KPN to name TPG head as new chief executive
KPN to name TPG head as new chief executive
By Ian Bickerton in Amsterdam
Published: September 9 2001 19:01 | Last Updated: September 10 2001 10:08
KPN, the Dutch telecommunications group, will on Monday afternoon announce the appointment of Ad Scheepbouwer, chairman of TPG, the Dutch postal and logistics group, as its new chief executive.
People close to both companies said Mr Scheepbouwer would replace Paul Smits, who is to resign after unsuccessful attempts to ease the company’s E22.8bn ($20.7bn) debt mountain.
Final details of the appointment remained to be ironed out on Monday morning but they are said to be merely technical issues related to the succession, such as notifying KPN’s works council of the change and the appointment is expected to be confirmed on Monday afternoon.
KPN also said it was in advanced talks with a group of banks for replacement credit facilities, believed to centre around a $2.5bn revolving bank loan which would be fully committed for three years.
Shares in KPN climbed 11 per cent to E2.65 on the news at the open of trade in Amsterdam before settling back to trade about 6 per cent higher.
Under Mr Smits, KPN has seen its shares plummet 87 per cent this year to less than E3, against a high of E71.67 last year, and has amassed a mountain of debt as it spent billions of euros buying a German mobile business and securing European third-generation mobile licences.
Mr Scheepbouwer is likely to face calls from investors eager for a clear debt reduction plan and future business strategy.
