Telecom board set for shake-up 

More boardroom changes are expected to follow Telecom's appointment of a new chairman.

Telecom's share price has fallen by 19% over the last month, after the government said on May 3 that it must open its local phone network to its competitors to improve high speed Internet services.

Telecom board member Wayne Boyd takes over as chairman on July 1 from Dr Roderick Deane, who steps down at the end of the month after 13 years on the eight-member board and six years as chairman.

As well as Deane, another experienced director Paul Baines will step down from the board at the end of this month, and Boyd's first job will be to replace them.

The prospect of a board shake-up is also raising questions about chief executive and managing director Theresa Gattung's future.

Boyd has declined to endorse any particular director including Gattung, saying only that Telecom has a very able management team and board.

Gattung has been in the top job since 1999.

Meanwhile, fund managers say Burns Philp, majority owned by New Zealand's richest man Graeme Hart, company is unlikely to bid for Telecom.

Newspaper speculation that Telecom was a target drove the telco's share price up more than 2%.

Fund managers say Burns Philp is more likely to look at food companies in North America or Australian packaging group Amcor.

Turnover of Telecom shares on the NZX50 on Thursday was $153 million, amid the takeover speculation and news of Boyd's appointment as its new chairman. Telecom gained nine cents to close at $4.58.