Shares in British Telecommunications rallied this afternoon on hopes that a board meeting this afternoon may yield the resignation of chief executive Sir Peter Bonfield at the very least, dealers said.
BT shares were 16p or 3 per cent higher at £5.16 this afternoon as rumours spread that the company has allegedly cancelled a dinner with major shareholders scheduled for tonight in London.
Mr Bonfield and chairman Sir Iain Vallance have been widely blamed for the company's problems, most significant of which is a £30 billion sterling debt mountain.
The once mighty state owned telecom monopoly was ignominiously put on credit watch by Moody's Investor Services.
"My own judgement is that we may get some announcement at the conclusion of the board meeting," said Williams de Broe analyst Mr Nigel Hawkins.
Another leading analyst said he wouldn't be surprised if Mr Bonfield resigned, as this is the minimum price BT will have to pay so that investors will back a rights issue to clear a portion of the debt.