WorldCom chief Mr Bernard Ebbers has resigned amid a plummeting stock price and a US government inquiry into company support of his personal finances.
Mr Ebbers (60), who was behind the transformation of WorldCom into one of the world's top telecommunications firms, will be succeeded by vice chairman Mr John Sidgmore (51), the company said.
Just two years ago, WorldCom was among the highest-flying firms competing in the heady telecoms arena. But the costs of aggressive expansion - largely through dozens of acquisitions - and the rapid, global downturn in the telecommunications market undercut the company's growth.
Then, as the stock price - which topped out above $64 a share in 1999 - eroded, questions emerged about the company's $366 million in personal loans to Mr Ebbers, a relationship that has led to an investigation by the US Securities and Exchange Commission.
The stock closed yesterday at $2.35 on Nasdaq, having fallen nearly 30 per cent on the day. The stock has fallen more than 80 per cent since January.
