Speculation that Deutsche Telekom's chief executive Ron Sommer may be asked to leave is growing.

On Tuesday, shares in the company jumped almost 7% as investor hoped he might be replaced.

The steering committee of the supervisory board met to discuss Mr Sommer's position, amid signs that government supporters have lost faith in him.

However, late on Tuesday, a spokesman for Deutsche Telekom declined to say if any decision had been made.

The four-member steering committee can call a full meeting of the supervisory board to make any changes in the management and its voice is often decisive.

Who is to blame?

Investors blame Mr Sommer for an expensive acquisition spree and for overspending on third-generation licences.

These moves have saddled the company with heavy debts and caused its share price to drop sharply.

The German government, Deutsche Telekom's biggest shareholder, has a 43% stake.

The boost in the share price was also fuelled by the business weekly Wirtschaftswoche which quoted company sources as saying Mr Sommer would resign by next Monday.

The magazine said that Chancellor Gerhard Schroeder had asked former Volkswagen chief Ferdinand Piech to take over the top job at Europe's largest telecom operator.

The shares held their gains even after both the government and a spokesman for Mr Piech denied that he had been offered the job.

On Tuesday, German Chancellor Gerhard Schroeder refused to comment on Mr Sommer's future.

Some three million Germans bought shares in the company before they tumbled 90% from their high in March 2000.