PARIS--Stephane Richard is likely to keep his job as chief
executive of France Telecom SA (FTE) at a board meeting Monday,
days after he was put under formal investigation for his alleged
role in an arbitration ruling five years ago, French newspaper Le
Monde reported on its website late Saturday.
Three France Telecom board members representing the French
state, which owns 27% of the telecom giant, have decided to vote in
favor of keeping Mr. Richard in his job, Le Monde reports.
In addition, at least four of the board's seven independent
members support Mr. Richard in his role, according to Le Monde.
France Telecom declined to comment Sunday.
Last week, French authorities filed preliminary charges of
conspiracy to commit fraud against Mr. Richard for his alleged
actions when he was a senior official at the French finance
ministry.
Investigating magistrates are looking into his role relating to
an arbitration panel and its decision to grant a 420 million euro
($560.4 million) award from the French Treasury to business tycoon
Bernard Tapie.
The government's board members decided to maintain Mr. Richard
in his position because it is in the company's interest. Mr.
Richard has the support of many of his employees, and the formal
investigation won't prevent him from doing his job, according to Le
Monde's report.
Write to Christina Passariello at
christina.passariello@dowjones.com and Sam Schechner at
sam.schechner@dowjones.com
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