THE former managing director of British Telecom, Mr Michael Hepher, is making a return to business life this summer as chief executive of investment bank, Charterhouse. Mr Hepher, who resigned as BT managing director last November, will take up the post on July 1st.

The investment bank's chairman, Mr Victor Blank, abandoned his role as chief executive late last year and appointed headhunters to find a replacement for him.

"Michael Hepher is a very successful and highly regarded business manager with an excellent reputation in the City and industry," said Mr Blank.

Charterhouse has two owners, Germany's Berliner Handels und Frankfurter Bank and Credit Commercial de France.

"I believe I can make a real contribution towards the development of their plans," Mr Hepher said.

"What attracted me most of all was that each of the partners is looking at development of the business from the point of view of their clients, clients in industry and institutional clients.

Mr Hepher, 52, has spent most of his career in the financial services industry.

Before his time at BT, he was chairman and chief executive of Lloyds Abbey Life and a director of Lloyds Bank.

He is also a non executive director of Grand Metropolitan and a fellow of the Institute of Actuaries.

In 1991, Mr Hepher was appointed to the post of BT's managing director and was responsible for the group's radical job shedding programme, as part of its plan to cope with increasing competition.

He also played a crucial role in BT buying 20 per cent of MCI, the American long distance phone company.