BT Retail chief leaves amid rumours of unrest

BT Group announced yesterday that Pierre Danon, Chief Executive of BT Retail since October 2000, will leave the UK telco in early 2005 to join French IT consultancy group Cap Gemini as Chief Operating Officer. The announcement followed speculation about boardroom rifts within BT, primarily concerning Mr Danon’s favoured strategies for the company’s retail arm. He had recently made public his desire to invest heavily in local loop unbundling, a move that would enable BT Retail to compete more effectively as a broadband internet provider, but would also have the effect of reducing sister company BT Wholesale’s revenues. Analysts have so far not identified any obvious replacements for Mr Danon.