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T-Online executive quits
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September 21, 2000: 7:28 a.m. ET
Second departure in month; shares hit new low as Telekom exerts control
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LONDON (CNNfn) - Shares in T-Online International AG, Europe's largest Internet service provider, fell to an all-time low on Thursday after the company's second executive resignation in a month amid reports of a power struggle as parent Deutsche Telekom AG exerts its influence.
T-Online shares fell almost 4 percent to  24.55 ($19.20), almost 9 percent below the 27 at which Deutsche Telekom sold the shares in April. The latest low is also almost 50 percent down from the stock's record high of 48 euros, reached on May 2.
 Deutsche Telekom, which retains bout 85 percent of T-Online (ATOL), said Ralf Eck, the director in charge of marketing, would resign immediately. T-Online's chief executive Wolfgang Keuntje resigned Deutsche Telekom (FDTE) over strategy.
The Financial Times said Deutsche Telekom chief executive Ron Sommer was dissatisfied with T-Online's marketing policy and this was the first of a series of changes as the parent company set about replacing the Internet unit's management by the end of the year. Deutsche Telekom refuted the claim and said Eck left for "personal reasons".
"T-Online has had its chain yanked," Jamie Wood, an analyst at JP Morgan, told CNNfn.com. "T-Online attempted to realign as a portal moving away from the access business, but that would be detrimental to Deutsche Telekom's business."
Wood said T-Online's share price has also suffered because of other fundamental reasons. First-half revenue figures showed little quarter-on-quarter change in advertising and e-commerce revenue, while income including access charges fell 6 percent. T-Online posted first-half losses last month.
"Internet stocks have run up too far, and still haven't come down far enough, in our opinion," Wood said.
Deutsche Telekom's shares were down 6.4 percent at 33.96 by midday Thursday, as most European telecom stocks declined after a profit warning Wednesday by U.S. rival Sprint Corp. (FON: Research, Estimates). 
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