BusinessBusiness RecoveryGiuliani tipped for top WorldCom post

Giuliani tipped for top WorldCom post

Reports suggest that former New York mayor and September 11 hero Rudolph Giuliani may make a play for chairman of embattled telecom WorldCom.

Link: Special report on WorldCom

According to a report on the BBC Online, an investor group, which has already accumulated 10% of the failed telecom debts in the form of bonds worth $300m (£190m), has recruited the ex-mayor and is hoping to install him as chairman of WorldCom.

This is seen by some as a direct threat to newly appointed chairman and chief executive Michael Capellas who has recently shifted across to WorldCom from computer giant Hewlett Packard.

David Matlin, who heads up the investor group, believes Capellas is not the right person to lead WorldCom, according to reports.

Matlin believes Giuliani’s credibility will help give WorldCom extra time to turn the business around. Giuliani has also been linked to the now vacant post of chairman of the US Securities & Exchange Commission, following the resignation of Harvey Pitt.

In comments made to the Wall Street Journal, Capellas said he would like to work closely with Matlin and Giuliani, which could result in Giuliani gaining a seat on the WorldCom board.

WorldCom currently operates under Chapter 11 bankruptcy protection after revealing a hole in its accounts which now stands at $9bn.

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