Germany's Arcandor taps Telekom CFO as new CEO
The Associated PressRetailer Arcandor AG said Wednesday its board has proposed Karl-Gerhard Eick, the outgoing chief financial officer for Deutsche Telekom, to become the new CEO with the aim of replacing Thomas Middelhoff next year.
In a brief statement, the Essen-based operator of department stores Karstadt and the famed KaDeWe in Berlin, said its supervisory board would meet Thursday to vote on the proposal. It is seen as a done deal.
If approved, Eick would start on March 1, the same day Middelhoff would step down.
Investors were buoyed by the news, sending Arcandor shares up nearly 9.8 percent to euro2.25 ($2.86) in Frankfurt trading.
Arcandor, which also holds a majority stake in tour operator Thomas Cook PLC, has been engaged in a long-term effort to stabilize its Karstadt business amid a slump in consumer spending.
Eick on Wednesday said he would step down in February as CFO of Bonn-based Deutsche Telekom AG, where he has been CFO since 2000.
Middelhoff became CEO of Arcandor in May 2005. Before that he was chairman and CEO of the privately held media group Bertelsmann AG from 1998 to 2002.
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