PARIS--French President Francois Hollande said Stephane Richard should keep his job as chief executive of part-state-owned company France Telecom SA (FTE, FTE.FR), hours ahead of a key board meeting Monday to decide his fate.

Mr. Richard was put under formal investigation last week for his alleged role in an arbitration ruling five years ago.

"As long as Mr. Richard can lead this company without consequences from the judicial procedure, he will stay," Mr. Hollande said in an interview with French channel M6 Sunday.

The president said his main concern was to prevent the company, which employs 170,000 people, from being affected by the probe targeting Mr. Richard.

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 country's finance ministry.

Investigating magistrates are looking into his role relating to an arbitration panel and its decision to grant a EUR420 million award from the French Treasury to business tycoon Bernard Tapie.

Through his lawyer, Mr. Richard has said all his actions related to the arbitration were legal and denied any wrongdoing.

The French state owns 27% of the former telecom monopoly and has three representatives on the 15-member board.

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