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| News Time: 2008-07-27 - 06:43:53 GMT - Business News |
| LONDON (Reuters) - Vodafone's (VOD.L) incoming Chief Executive Vittorio Colao will need to combine his famed analytical mind with the discipline learnt as a reserve officer in Italy's Carabinieri when he takes up the top job this week. |
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The keen windsurfer will also have to prepare for the roller coaster ride that will invariably come with being the head of the world's largest mobile phone company by revenue. The 46-year-old Italian was warmly welcomed in May as the obvious choice to become chief executive from his role as the head of the European business. But conditions have since changed and Colao will take over as the economic downturn starts to bite, prompting some customers to shun buying or using their mobile phones. Colao has indicated he will follow his predecessor Arun Sarin's strategy of expanding into the faster-growing emerging markets while pushing newer products such as mobile broadband in the near-saturated European territories. But he is likely to face a difficult start following a recent weaker-than-expected trading update which unnerved the entire sector and dented hopes that the British-based firm would remain resilient in a downturn. Colleagues who have worked with Colao describe him as approachable, happy to listen, hands-on and with an analytical mind. "Everyone has the right to be listened to before he decides," said one person close to him who asked not to be named due to his position in the industry. "And then he decides very quickly." He is likely to have tough decisions ahead. The father of two enjoyed a steady rise to become one of Italy's most successful businessmen. He is a former McKinsey consultant, Harvard MBA and Bocconi undergraduate. He first joined Vodafone when Omnitel was taken over by the mobile giant in 2000 and subsequently headed the group's southern Europe, Middle East and African operations before leaving in 2004 for RCS Media. His spell at the publisher of Italy's prestigious Corriere della Sera marked his only real career disappointment. He left in 2006 in the face of shareholder pressure. But he soon regained the upper hand, returning to Vodafone as head of its European unit. Sal. Oppenheim analyst Wolfgang Specht said Colao had coped well with running Vodafone's operations in mature western European markets and would likely benefit from the experience of dealing with regulators. Analysts greeted his appointment as the obvious choice for the job and a safe pair of hands to take over in difficult times. However they cautioned they still did not know him well. "He's been there quite a while and it's not obvious that he has a different view of the world to anybody else at Vodafone," Nomura analyst Martin Mabbutt told Reuters. "He's been instrumental I suspect in fashioning quite a lot of what is currently there having run the European business, so you wouldn't assume that any big change is afoot." All the analysts Reuters spoke to said Colao normally sounded "on top of the job" when speaking at results sessions but noted he had struggled at the most recent conference, after Vodafone warned revenues would be at the bottom of a previously stated forecast range. "He was definitely hesitant," James Barford of Enders Analysis told Reuters. He will need to regain his composure when he takes over this week. (Editing by Sue Thomas)
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