Capellas leaves HP, may lead WorldCom

Brian Bergstein

Monday, Nov. 11, 2002 | 9:43 a.m.

NEW YORK -- Michael Capellas quit today as the No. 2 executive at Hewlett-Packard Co., just hours after a newspaper reported he is a leading candidate to take over troubled WorldCom Inc.

Capellas, who came to HP as part of its $19 billion acquisition of Compaq Computer Corp. in May, is leaving the Palo Alto, Calif.-based company to "pursue other career opportunities," according to an HP statement.

In the statement, HP Chief Executive Carly Fiorina said the merger integration had "reached a natural transition point" and added that she supported his decision.

"I'm comfortable making this move because of the progress of the integration, HP's market momentum and the strength of the management team," Capellas said in the statement. "I have tremendous respect for Carly and her leadership. I could not be more proud of our accomplishments and I have every confidence in the future success of the company."

An HP spokeswoman did not immediately return calls seeking comment.

In early trading on the New York Stock Exchange, HP shares fell 8.1 percent, or $1.35 a share, to $15.33.

The Wall Street Journal reported today that Capellas, who had been Compaq's CEO before becoming Hewlett-Packard's president, had become the front-runner to succeed WorldCom CEO John W. Sidgmore.

The Journal also said other executives were still being considered by WorldCom's search committee, including XO Communications Inc.'s Chairman and CEO Dan Akerson and BellSouth Corp. Vice Chairman Gary Forsee.

A source familiar with the search, however, told The Associated Press on condition of anonymity that Forsee was "never seriously interested" in the job.