Sonera CEO resigns

June 11, 2001
Web posted at: 0914 GMT

LONDON (CNN) -- Finnish telecoms company Sonera said on Monday Chief Executive Kaj-Erik Relander resigned to join a venture capital firm.

Relander is stepping down after only six months in the jobs and amid speculation that Sonera is about to link up with a regional rival such as Telia of Sweden or Norway's Telenor.

"Mr Relander's decision was a surprise to me," said board chairman Tapio Hintikka. "Personally I would have hoped for him to continue. He has, however, made his decision."

Hintikka said that Relander's resignation has no effect on the strategies or the targets of Sonera (SNRA: Research, Estimates).

Relander will join Accel Partners, a venture capital firm, as a partner and will lead the investment strategy for Accel's global wireless activities, a Sonera statement said.

Relander, whose decision to quit comes just days after the departure of another senior executive, did not elaborate on why he was leaving Sonera.

However, Relander has been the focus of criticism after the company's decision to spend billions of dollars on third-generation (3G) mobile phone network licences in Europe.

European telecom companies have spent more than $100 billion on snapping up permits to offer new Internet, email and video services to mobile phones.

But such services could take some years to come online, in the meantime leaving telecom companies with huge debts.

Sonera said senior executive Aimo Eloholma would succeed Relander as acting CEO from August 1.

Last Friday, Sonera executive vice president Harri Hollmen, responsible for second and third-generation international mobile operations and Internet portal Plaza, also announced his resignation.

The company has been plagued by media speculation of management unrest under Relander's leadership.

At the company's annual meeting in March, almost the entire board was axed with the exception of one member.

Shares in Sonera, which is 53 percent-owned by the Finnish government, fell as much as 6 percent in Helsinki trading to 10.15 after the resignation was announced.

Sonera shares traded as high as 97 in March 2000.

		Want the full story? Search for free Company Info...
		Enter Company Name:-

Sonera profit disappoints – Jan. 19, 2001

Sonera

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.