The Finnish serfs have taken over the castle? His "style" perhaps didn't include those strange mini-glasses I see on every mid-20's dresssed-all-in-black Finnish hipster mid-management type. So, the midi-mans gave him das boot.
Sonera hit by surprise resignation of CEO
By FT.com staff
Published: June 11 2001 07:15GMT | Last Updated: June 11 2001 09:17GMT
Sonera, the Finnish telecoms operator at the centre of recent merger speculation, announced on Monday the resignation of Kaj-Erik Relander, its chief executive. Mr Relander's decision was described as a "surprise" by Tapio Hintikka, Sonera's chairman.
Sonera shares fell by more than 4 per cent to E10.25 in early Helsinki trading.
The market has been buzzing recently with rumours that Sonera could be about to join up with Telia of Sweden and TDC of Denmark. Telenor of Norway could be another possible bidder.
Sonera declined to comment on Monday about a possible link-up with Telia. However, the shake-up at the top would make any merger easier.
Mr Relander's move follows a long line of executive resignations at the troubled Finnish telecoms operator, including the departure last Friday of Harri Hollmén, executive vice-president responsible for international mobile joint ventures.
Aimo Eloholma, head of Sonera's telecoms business, is to take over as acting chief executive, while the company searches for a replacement. "The next step for Sonera is to find a new president and chief executive, who will come outside of the company," Mr Hintikka said.
Sonera, which is 53 per cent state-owned, saw its net debt balloon from about E1.3bn at the end of 1999 to about E6bn last year. This was mainly the result of its investments in 3G licences, particularly a 42.8 per cent stake in the German Group 3G licence.
Concerns about 3G exposure have contributed to a sharp drop in the group's share price, which has fallen from a peak of E97 in March 2000.
Mr Relander's leadership has been increasingly under fire from the company's middle management, who have questioned his style. He was also sharply criticised for his involvement in a favourable management option scheme, which the government eventually backtracked on.
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