A senior member of Deutsche Telekom's supervisory board today criticised US investment bank Goldman Sachs for trying to influence the body in its decision on whether to sack chief executive Mr Ron Sommer.
Goldman chief executive Mr Henry Paulson, whose firm advises Telekom on strategy, has warned the German government in a letter against changes at the helm of the company.
"It is unusual and disconcerting that Mr Paulson, as chief executive of Goldman Sachs, is trying to exert influence with a letter before a meeting of the supervisory board," board member Mr Andre Leysen said in a brief interview.
Investors have been clamouring for Mr Sommer's head for months, blaming him for stretching the company's balance sheet with costly acquisitions. Mr Leysen is a key shareholder representative on the board who is believed to favour Mr Sommer's removal.
Telekom's employees and management team, however, have opposed ousting Sommer and criticised the government's handling of the affair.
Goldman became the latest voice defending the embattled Mr Sommer, whom the government wants to replace with veteran Telekom manager Mr Gerd Tenzer at a supervisory board meeting next Tuesday.
Mr Paulson said the US investment bank was "actively involved" in the execution of Telekom's plan and was concerned that any changes in management would have a negative impact.
"The essential element of the successful execution of this plan is the continuity of Deutsche Telekom's management," he said.
Mr Leysen said Paulson's decision to step into the increasingly bitter debate was detrimental to Deutsche Telekom.
"Telekom accepts Goldman as a service provider, and from that point of view Mr Paulson's action is unprofessional and a burden for Deutsche Telekom's business," he said. He declined further comment.