By Ruth Bender
PARIS--The future of France Telecom's (FTE) chief executive is
open to question after French authorities on Wednesday placed
Stephane Richard under formal investigation for his alleged role in
an arbitration ruling that gave a financial award to a prominent
French businessman five years ago, France's technology Minister
Fleur Pellerin said Thursday.
"The question is being asked," Mrs Pellerin told French radio
RTL in response to a question whether Mr. Richard will continue to
stay at the head of France Telecom. The group's board will have to
come up with an answer to that question at its meeting in the
coming days, she added.
Mrs Pellerin said the board hadn't yet taken a decision about Mr
Richard's future at France Telecom, which is 27%-owned by the
French state.
"We are discussing it," she said, adding that the group's board
will meet "at the beginning of next week."
Prosecutors Wednesday said in a statement that investigating
magistrates have pressed preliminary charges of conspiracy to
commit fraud against Mr. Richard for his alleged actions
surrounding the arbitration panel and its decision to grant a 420
million-euro ($559 million) award from the French Treasury to
business tycoon Bernard Tapie. Mr. Richard was a senior official at
the French Finance Ministry at the time of the decision.
Mr. Richard plans to appeal the move to put him under formal
investigation, his lawyer, Jean-Etienne Giamarchi, said Wednesday.
Mr. Giamarchi said the charges "have no serious legal basis,"
adding that they are "grotesque and defamatory."
French Finance Minister Pierre Moscovici in a statement late
Wednesday said that company's board will have to meet as soon as
possible to assess the situation.
-Write to Ruth Bender at ruth.bender@dowjones.com
Sam Schechner contributed to this report
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