AT&T loses more top talent as business chief quits --'''':<
By Jessica Hall
NEW YORK, Feb 24 (Reuters) - AT&T Corp. on Wednesday
lost another key executive as the head of its lucrative
business services unit resigned to take the helm at Global
Crossing Ltd. , a company building undersea and
land-based fiber optic networks.
Bob Annunziata resigned as president of AT&T's $22 billion
business services division, which provides voice and data
services to 8 million business customers, after just seven
months on the job. He will be replaced by Mike Keith, who
previously served as the unit's executive vice president.
Annunziata returned to AT&T last July, after a 15-year
hiatus, when the nation's No. 1 long-distance carrier bought
the company he had founded, Teleport Communications Group, for
about $12 billion. He had overseen AT&T's business unit since
September.
"Annunziata leaving is a blow to AT&T, who counted on his
contribution and who needs entrepreneurial talent now more than
ever as they struggle to reinvent themselves," said Jeffrey
Kagan, an independent telecommunications analyst.
Another analyst, who declined to be named, said that
Annunziata's brash style may have clashed with the conservative
and bureaucratic culture at AT&T.
Annunziata began his career at AT&T and worked there for 17
years before leaving for Teleport in 1983. During his brief
tenure with the business services division, the unit's revenues
increased 4.7 percent in the second half of the year, slightly
below expectations.
The addition of Annunziata, known for an ability to turn
telecom industry dark horses into Wall Street darlings, is a
coup for Global Crossing, which will immediately gain more
visibility with him as chief executive, analysts said.
Shares of Global Crossing surged on the news, gaining $4.25
or almost 8 percent to $57.875. Shares of AT&T fell $1.31 to
$84.56.
Annunziata's departure from AT&T follows recent changes in
some high-level management duties and adds to the long list of
high-profile executives who have left over the past two years.
Analysts expect more defections of marquee talent as AT&T
completes its planned acquisition of the cable television
company Tele-Communications Inc. and tries to
transform itself from a stodgy phone company into a fast-moving
telecommunications industry leader.
"AT&T's bench is full of strength because of all the new
talent coming in (from acquisitions). They all look around and
realize there isn't enough room here for all of them to shine.
I wouldn't be surprised to see more people leave," Kagan said.
AT&T President John Zeglis, who oversees consumer long
distance operations and international activities, has been
rumored as one executive who may leave. Zeglis was once
considered a possible successor to former AT&T Chairman Robert
Allen, but he lost out when AT&T's directors opted instead to
bring in C. Michael Armstrong from Hughes Electronics Corp.
as Allen's heir.
AT&T recently shuffled the duties of several top executives
to prepare for its pending acquisition of TCI, with Armstrong
taking more control over day-to-day operations and over TCI.
As part of that move, TCI President Leo Hindery will
oversee the broadband business and report directly to
Armstrong, instead of Zeglis as originally planned. Some
analysts viewed that move as a sign Zeglis may be edged out.
Other key executives who have left AT&T include Gail
McGovern, head of AT&T's consumer services unit, who left in
August to join the mutual fund company Fidelity Investments.
Then Jack McMaster, another top consumer unit executive, left
just three months later to join Qwest Communications
International Inc. .
Jeffrey Weitzen, the former head of business markets
division, left in Jan. 1998 to become president of Gateway 2000
Inc.
Other famous AT&T alumni include former long distance
chief, Joe Nacchio, who left to run Qwest, the No. 4 U.S. long
distance company, and its former chief operating officer, Alex
Mandl, who left to join upstart Teligent Inc. .
(( Jessica Hall, New York newsroom 212-859-1729)) |
