By Dominique Vidalon and Gilles Guillaume
PARIS (Reuters) - Martin Bouygues (PA:BOUY), one of France's most prominent business leaders, named two more deputy CEOs to the family-controlled construction and media empire he has led since 1989, signalling he would not automatically be succeeded by a relative.
Bouygues, 64, said on Wednesday Bouygues Telecom boss Olivier Roussat, 52, and group finance chief Philippe Marien, 60, would assist him in running the business his father Francis founded in 1952 and which bears the family name..
The duo will join Martin's brother Olivier, 66, deputy CEO since 2002.
The move came as the Bouygues group reported improving profitability at its telecoms business, France's third-biggest mobile operator, which it failed to merge with market leader Orange in April.
Martin Bouygues, who spearheaded the group's expansion into telecoms, told a news conference this showed Bouygues Telecom did not need a deal to thrive in a cut-throat market.
On his decision to appoint more deputies, Bouygues said: "I wanted governance to evolve. Succession issues are not taboo. It's my responsibility to ensure the future continuity of the group".
In March, the group's shareholders approved Martin's son Edward, 32, and nephew Cyril, 30, as board members.
Sources said at the time Bouygues, a friend of former French President Nicolas Sarkozy and also on good terms with the Socialist government, could consider splitting the chairman and CEO positions while younger family members were groomed for top jobs. Marien and Roussat could be candidates to replace him as CEO under such a scenario, the sources said.
"The appointment of two deputy CEOs indicates succession planning is well underway,” said Jefferies analysts in a note.
Bouygues, however, said on Wednesday he had no immediate plan to split the chairman and CEO roles.
Commenting on the family's younger guard, he said: "They must work and get responsibilities if they deserve it."
"The family aspect is important and the Bouygues name is an asset," he added, when asked if his successor would come from within the family ranks.
The group also reiterated its pledge to improve profitability this year after first-half earnings beat market expectations, sending its shares up 3 percent.
TELECOMS IMPROVING
The group, which also builds roads and owns France's biggest private TV broadcaster TF1, said first-half current operating profit rose 73 percent to 206 million euros ($230 million), though sales fell 3 percent to 14.67 billion euros.
According to a company poll of 11 analysts, median forecasts included first-half sales of 14.80 billion euros and current operating profit of 174 million.
France's telecoms sector, hit by a price war following the entrance of low-cost player Iliad in 2012, has been awash with takeover speculation since then.
But Bouygues said a turnaround plan - including staff cuts and focussing on the rollout of its 4G network and the fixed-line broadband market - meant Bouygues Telecom didn't need a deal.
"The strategy initiated over the last two years is paying off," he said.
Bouygues Telecom's first-half operating earnings reached 38 million euros after a loss of 54 million in the same period of 2015, on a 6 percent rise in revenues to 2.29 billion euros.
It added 51,000 fixed-line and 303,000 mobile customers in the second quarter.
