France Telecom seeks new boss

PARIS, France -- With the departure of Michel Bon, France Telecom is faced with the difficult task of finding a new chief executive who will satisfy both the government -- which still has a majority stake in the company -- and shareholders, who have seen their investments dwindle during Bon's rein.

But there does not appear to be any rush to immediately fill the position, left vacant late on Thursday after Bon succumbed to pressure and resigned from the job he held for seven years. (Full story)

French Finance Minister Francis Mer says it could take at least three weeks to find a successor to Bon, 59, and begin the work of refinancing after the debt-laden group, which on Thursday cut its ties with German mobile phone partner MobilCom -- which now faces insolvency. (Full story)

"The problem is to construct a solution with the new management, the new chairman ... who will replace Michel Bon at the end of this month or the beginning of October,'' Mer told RTL radio in an interview.

"With the new management, we should create the conditions to establish France Telecom's financial credibility in the markets.''

So far, media speculation has placed Thierry Breton, the chief executive of French consumer electronics group Thomson Multimedia, at the top of the list of candidates to replace Bon.

Also seen as possible candidates are Airbus' Noel Forger and Renault's Louis Cheater.

Breton, 47, is well known in both corporate and political circles -- having been called on twice before by the government to help rescue an ailing French company.

Five years ago, he was picked to run Thomson, which at the time was suffered under a heavy debt load and was on the verge of collapse. Now, after taking it public and establishing key partnerships -- among them, technology giant Microsoft -- Breton has lifted Thomson to the No. 4 position among the world's consumer electronics companies.

In 1993, the government asked Breton to help turn around troubled French computer maker Bull. As second in command, he also managed to pull Bull from the edge of bankruptcy.

Breton began his own software company at the age of 24 and helped create an open-air theme park in France when he was 31. He has also taught mathematics at a French high school in New York and is the author of eight books.

Thomson officials were not available on Friday to comment on Breton's future.