Ex-NY mayor 'to head telecoms giant'

Rudolph Giuliani is favourite to become the new boss of bankrupt telecommunications giant WorldCom, it was reported today.

Investor David Matlin hopes to buy-up at least a third of the company and install the former New York Mayor as its chairman.

Mr Matlin, who heads a bond-investor group backed by Credit Suisse First Boston, is expected to urge a US bankruptcy judge to accept the reorganisation plan, according to the Wall Street Journal.

WorldCom admitted a €7.8bn accounting fraud earlier this year and has now become the biggest bankruptcy in American history.

If Mr Matlin and his group of investors can accumulate one-third of WorldCom’s bonds they would have the right to appoint the company’s board members.

Michael Capellas was named as chairman and chief executive of the firm last week after winning the approval of its committee of official creditors.

Mr Matlin, who is believed to be WorldCom’s largest creditor, is not a member of the committee and has not expressed complete confidence in the appointment.

Mr Capellas said he wanted to meet with Mr Giuliani, who remains one of the most popular men in the US following the September 11 terror attacks.

He told the Journal: “What’s not to like? He’s ’Man of the Year.

“We are going to see if there is a role for Giuliani. We are moving forward and assembling a world-class board.”