Mr Christopher Bland becomes chairman of British Telecommunications tomorrow as the company prepares a £5 billion cash call to pull itself out of a debt crisis.
Mr Bland's first priority will be to finalise details of the rescue package, which industry sources said is also set to include the demerger of its mobile phones division and the sale of its Japanese investments.
The appointment of Mr Bland last Thursday to replace Sir Iain Vallance cleared the way for BT to ask shareholders for fresh cash.
The details of the rescue package are still in flux, but the cash call is likely to be three times the record 1.7 billion pound rights issue by media group Pearson last year, the sources said.
BT will sell existing investors new shares at a 25-50 per cent discount in its rights issue, they said.
Weekend newspaper reports said the rights issue could raise as much as £10 billion sterling, the entire amount by which BT is trying to cut its £30 billion debt pile.
BT shares were 1.4 per cent higher at £5.57 in early trade today.
Leading shareholders demanded Mr Vallance's withdrawal as the price of their support for a rights issue, but some also want it to be accompanied by a significant restructuring move.
To that end, BT is pushing ahead with plans to spin-off its mobile business BT Wireless and give shares in the new company to BT shareholders. BT would also be able to transfer debt from the group into the new company.
BT is also planning to sell its 20 per cent stakes in Japan Telecom, Japan's third largest carrier, and mobile affiliate J-Phone, which could raise it $2.7 billion. Vodafone has said it is interested in raising its 25 percent stakes in the companies.