|>From The AWSJ
9th July 1999
Telekom Malaysia Chairman Hassan Resigns Effective July 12
-By Netty Ismail and Tara Patel
KUALA LUMPUR -- Telekom Malaysia Bhd.'s
chairman, Ali Hassan, has
tendered his resignation, with effect
from Monday, the Ministry of
Finance said Friday.
The ministry said Md Radzi Mansor
has been named the new chairman.
Radzi is senior vice-president of
Telekom Malaysia's regulatory
management and external affairs division.
Earlier this week, Mohamed Said Mohamed
Ali, chief executive of the
company, denied he is leaving the
company, following an Asian Wall
Street Journal report that quoted
industry people as saying management
troubles in the company could
cost him his job.
The article also said Monday that
Mohamed Said and Telekom's board,
headed by Ali, have been locked in
a management battle since early
this year over funding issues, especially
those related to Telekom's
overseas forays into South Africa
Analysts said the change isn't expected
to affect Telekom operations
as Ali had little to do with the
actual day-to-day management of the
But they expressed surprise over his
replacement as Radzi is an
unknown. "I don't know who he is,"
said one analyst.
Telekom analysts said the management
shuffle isn't likely to
significantly affect Telekom share
prices Monday, after taking a
beating earlier this week. "If (Mohamed)
Said was leaving, that would
be a different story," one analyst
Telekom shares fell after a three-day
trading suspension following the
group's announcement it would bid
for a 14.5 billion ringgit
($1=MYR3.80) basket of shares once
traded over the counter in
The shares, quoted on the Central
Limit Order Book, or CLOB, were
frozen under Malaysia's capital controls.
Telekom and debt-laden United Engineers
(Malaysia) Bhd. have offered
to buy the shares at a 42% discount
in exchange for nonvoting Class B
shares in Telekom and UEM.
Talk of a management change also fuelled
the selling in Telekom
Analysts said profitable Telekom has
lost some credibility with
foreign investors over the CLOB bid,
and this latest change may not