Short of cash and unable to top Vodafone Group's offer for an increased stake in Airtel, a Spanish mobile- phone company, British Telecommunications had little choice but to cede control to its rival. Instead, the talks dragged out for months. Vodafone executives often faced a dozen or more lawyers from B.T., who spent most of the time arguing among themselves, according to people who attended the meetings. Eventually, Chris Gent, Vodafone's chief executive, went to Sir Peter Bonfield, his counterpart at B.T., to get the deal done, these people said. Michael Wadley, a spokesman for B.T., said the company acted to protect its interests.
Shareholders see it differently.
Many argue that the bureaucracy entangling B.T., a legacy from its days as a state-owned monopoly, prevents it from seizing opportunities. With B.T.'s stock down about 45 percent in the last 12 months and its debt ballooning, normally reserved British investors are calling for a management shake-up. Analysts are making lists of potential successors to Sir Peter as chief executive and to Sir Iain Vallance as chairman. Some changes seem inevitable. Adding to the frustration of shareholders is an apparently rising discord within company ranks.