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Siemens CEO Loescher will fight to keep job

Chief executive lobbies board for support

Loescher is unlikely to succeed in garnering the votes needed to keep his job as Siemens chief executive.
Loescher is unlikely to succeed in garnering the votes needed to keep his job as Siemens chief executive.

Siemens CEO Peter Loescher will fight to keep his job at a Wednesday meeting of the company's supervisory board, at which he was expected to be dismissed, reported German newspaper Sueddeutsche Zeitung.

The German engineering firm announced over the weekend it would sack Loescher, who has been unable to revive operations during his six-year tenure. Siemens has been forced to issue two profit warnings this year.

Appointed in 2007 as the first outsider to helm the company, Loescher had to abandon a plan to increase sales in favour of a cash-hording strategy to stave off competition.

The chief executive will need to marshal a two-thirds majority among board members to keep his job. Sueddeutsche Zeitung cited company sources as saying his efforts were unlikely to succeed and also reported that Loescher would go quietly if chairman Gerhard Cromme, who hired him six years ago, resigned.

Insiders this week told Reuters that the majority of the supervisory board would back CFO Joe Kaeser as Loescher's successor.