Michael Capellas quits as No. 2 at Hewlett-Packard Co., reportedly WorldCom candidate

<br>NEW YORK (AP) _ Michael Capellas quit Monday as the No. 2 executive at Hewlett-Packard Co., just hours after a newspaper reported he is a leading candidate to take over troubled WorldCom Inc. <br><br>Capellas,

Monday, November 11th 2002, 12:00 am

By: News On 6

NEW YORK (AP) _ Michael Capellas quit Monday as the No. 2 executive at Hewlett-Packard Co., just hours after a newspaper reported he is a leading candidate to take over troubled WorldCom Inc.

Capellas, who went to Hewlett-Packard in May as part of its $19 billion acquisition of Compaq Computer Corp., is leaving to ``pursue other career opportunities,'' according to an HP statement.

Carly Fiorina, the company's executive director, said the merger had ``reached a natural transition point'' and added that she supported his decision.

``I'm comfortable making this move because of the progress of the integration, HP's market momentum and the strength of the management team,'' Capellas said in the statement. ``I have tremendous respect for Carly and her leadership. I could not be more proud of our accomplishments and I have every confidence in the future success of the company.''

An HP spokeswoman did not immediately return calls.

In early trading on the New York Stock Exchange, HP shares fell 8.1 percent, or $1.35 a share, to $15.33.

The Wall Street Journal reported Monday that Capellas, who had been Compaq's chief executive before becoming Hewlett-Packard's president, had become the front-runner to succeed WorldCom CEO John W. Sidgmore.

The Journal also said other executives are still being considered by WorldCom's search committee, including XO Communications Inc.'s chairman and CEO Dan Akerson and BellSouth Corp. vice chairman Gary Forsee.

However, Forsee was ``never seriously interested,'' a source familiar with the search told The Associated Press, speaking on condition of anonymity.