BT chairman 'won't stand down'

BT has dismissed claims that its chairman has agreed to step down amid recent criticism and pressure from the company's shareholders.

According to Sunday newspapers, the telco had been expected to announce within the next few weeks that Sir Iain Vallance would leave the company by the middle of next year.

However, BT has dismissed the report as "rubbish" and confirmed that Vallance, who has just signed a two-year contract, is not about to stand down.

In a statement issued yesterday, BT said it "denied speculation in weekend press reports that Sir Iain Vallance would leave the company before his contract expires. His contract runs until 31 July 2002."

Speculation that Vallance would step down follows BT's announcement last week that Sir Anthony Greener, former chairman of drinks company Diageo, will join the board as a non-executive director from 1 October. Newspaper reports have suggested that Greener is a likely candidate to succeed Vallance.

BT, which has seen its shares slump to a record low in recent weeks, has been heavily criticised for its sluggish approach to allowing other telcos access to its exchanges, and has been accused of slowing down the roll-out of fast internet access services.

Separately, UK telecoms watchdog Oftel has denied reports that its beleaguered boss David Edmonds will step down, following increasing criticism about the regulator's performance. Oftel has come under fire for failing to ensure fair competition across the telecoms industry and has been accused of favouring BT.