WorldCom next for HP's Capellas?
Monday, 11 November 2002Hewlett-Packard president Michael Capellas is resigning, as speculation mounts that he will take the reins at embattled telecoms group WorldCom.
Capellas was leaving 'to pursue other career opportunities,' Hewlett-Packard said in a statement, without giving further details. His position as chairman would not be replaced, it said.
Capellas's departure coincided with reports that he was the front runner to take over as chairman and chief executive of WorldCom, which is struggling to emerge from bankruptcy.
WorldCom's board had informally 'signed off' on choosing Capellas as the successor of departing WorldCom chief executive John Sidgmore, The Wall Street Journal said, quoting sources close to the issue.
Capellas was favoured because of the clout he could bring to the scandal-tainted telecoms group, the paper said.
Capellas was previously the chairman and chief executive of computer group Compaq. He became president of Hewlett-Packard after Compaq merger with Hewlett-Packard.
He would face a daunting task at WorldCom, which is working under court supervision to survive as a restructured company after applying for bankruptcy protection in July.
