Keuntje "is leaving the company at his own request and cited personal reasons for his decision," Deutsche Telekom AG's Internet unit said.Detlev Buchal, deputy chairman of T-Online's supervisory board and a member of Deutsche Telekom's management board, will take over as acting head of T-Online, the company said.

T-Online, one of Europe's leading Internet-service providers, was spun off into a publicly held company in Dec 1999 and has been traded on Germany's Neuer Markt since April. Investors were not too happy about Keuntje's departure. T-Online's share price had been up about 5 per cent before the news Friday, then slid into negative territory, closing down 2.1 per cent to 28.35 euros. Shares of Deutsche Telekom, meanwhile, closed up 2.14 per cent to 44.30 euros. The unexpected departure comes just a few days before T-Online presents half-year earnings to the public and equity analysts. (The Wall Street Journal) They said the resignation is a huge surprise and hints at controversy between Keuntje and Ron Sommer, chairman of Telekom, because the press release did not thank Keuntje for his efforts.

"I don't think its good news at all," said Morton Andersen, an Internet analyst with Deutsche Bank in London. "This was an absolute surprise to everyone. He is quite a credible person: Not only did he understand the market well, he seemed to be taking the company in the right direction," Andersen noted. T-Online has reportedly been in talks with Freeserve PLC about a takeover of the British provider of free Internet service, which is currently controlled by retailer Dixons Group PLC.

(The Wall Street Journal)