WorldCom Names Capellas CEO, Chairman

Communications Today, Nov 18, 2002

WorldCom Friday appointed Michael Capellas its new CEO and chairman, four days after he left the president's post at Hewlett-Packard [HWQ]. Capellas, who has no experience in the telecom industry, will replace interim CEO John Sidgmore and Chairman Bert Roberts. Capellas said he has no intention of breaking up the company and selling off its pieces, and that he will move quickly to reconstitute WorldCom's board and meet with employees and large corporate customers. Terms of Capellas' contract with WorldCom have yet to be finalized, though Capellas said he intends to remain with the company through the bankruptcy reorganization process and beyond. Earlier this month, WorldCom said it plans to restate more than $9 billion in earnings as it faces additional charges of fraud filed by the U.S. Securities and Exchange Commission for misleading investors about its financial health.

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