British Telecom boss 'expected to quit early'

It's being claimed that BT chief executive Sir Peter Bonfield could leave the group by the middle of next year.

His contract does not expire until December, 2002.

But the Financial Times says Sir Peter is expected to stand down early.

That would follow the completion of the group's restructuring process, which is now due to be completed earlier than expected.

The FT adds that a decision to part with Sir Peter had not yet been ratified by the BT board, although at least one external candidate is thought to have been informally approached.

However, a BT spokeswoman said there was no reason to believe Sir Peter would leave early, stating: "He has said he intends to stay until December, 2002."

Sir Peter came under pressure to step down earlier this year as investors voiced their anger over the company's falling share price.

However, a successful rights issue and the replacement of chairman Sir Iain Vallance by Sir Christopher Bland appears to have calmed shareholders.

Sir Peter is in line for a £820,000 incentive payment if he stays until December, 2002. But BT's restructuring process is already well on the way to completion, with mobile phone arm mm02 due to be demerged later this year.

One of the major tasks left facing Sir Peter is to strike an agreement with US firm AT&T over the best way to break up their lossmaking joint venture Concert.