LONDON (Brand Republic) - BBC chairman Sir Christopher Bland is to become chairman of troubled telecoms giant BT on May 1, replacing Sir Iain Vallance who is stepping down from the role after pressure from investors.
BT investors have been calling for Vallance’s resignation for some months as the telecom group’s shares halved in value and the company’s debts climbed to £30bn.
They view Vallance and BT CEO Sir Peter Bonfield as making expensive acquisitions, resulting in the company’s lowest credit rating yet.
Bonfield’s resignation has been also called for by some shareholders in return for an emergency rights issue to help pay off some of BT’s debt.
Bonfield has promised to reduce the debt by between £10bn and £20bn by March next year and the incoming Bland has said he has no intentions of removing Bonfield from his role.
Vallance was appointed chairman of BT in 1987 and will stay on at the telecoms giant as president emeritus until his contract runs out in July 2002.
Bland has been chairman of the BBC board of governors since 1996 and will remain there until a replacement can be found.
BT’s share price fell 6% to 546p in early trading.
BBC chairman takes over from Vallance at BT
BBC chairman Sir Christopher Bland is to become chairman of troubled telecoms giant BT on May 1, replacing Sir Iain Vallance who is stepping down from the role after pressure from investors.