Magyar Telekom Denies CEO Straub Will Be Dismissed
BUDAPEST -(Dow Jones)- Hungary's incumbent telecommunications company Magyar Telekom, Thursday denied a report that it will dismiss its chief executive, Elek Straub, following pressure from majority owner Deutsche Telekom.
"Magyar Telekom categorically denies all rumors related to Elek Straub's dismissal," Viktor Galambos, Magyar Telekom's spokesperson told Dow Jones Newswires.
The comments follow a report Thursday in Hungarian business weekly HVG that cited unnamed sources at Magyar Telekom and said Straub would be dismissed due to an ongoing audit into contracts at Magyar's Montenegrin subsidiary.
In the same report, the paper also said that Tamas Pasztory, who currently serves as a deputy chief executive in charge of legal issues and human resources, is to be appointed as the company's new CEO.
Due to the ongoing audit, the company hasn't presented its audited 2005 results to investors and hasn't paid a dividend on 2005.
Magyar has called an extraordinary general meeting for Oct. 9, when the board is scheduled to provide detailed information about the status of the audit, the paper said.
Its next EGM, to be held in November, is scheduled to decide about the dividend, HVG said.
Newspaper's Web site: http://www.hvg.hu
-By Edith Balazs, Dow Jones Newswires; +361-267-0623; edith.balazs@dowjones.com
(END) Dow Jones Newswires"
Posted to the site on 5th October 2006
