Colt feels the weight of Fidelity

FIDELITY Investments has asserted further control over Colt Telecom by appointing two of its men as chairman and chief financial officer of the struggling alternative carrier.

The US fund manager, which lifted it stake in Colt to 54% by backing a £494m share placing late last year, said Fidelity vice chairman Barry Bateman would replace James Curvey as chairman. Curvey will remain on the board.

Fidelity chief financial officer Andrew Steward will be acting CFO at Colt until a permanent replacement is found for Lawrence Ingeneri, who announced in March his intention to quit.

Fidelity, which was a founding shareholder in Colt, has seen its investment crash from more than £40 a share at the peak of the telecoms boom in early 2000 to just 46p today. The December share placement resulted in Fidelity lifting its holding in Colt from 47.7% after a shortfall in subscriptions.