By Mike Boyer
The Cincinnati Enquirer

Kevin W. Mooney, the chief executive pro-tem who guided Cincinnati Bell Inc. through a $2 billion financial restructuring including divestiture of its money-losing broadband business, is resigning next Thursday.

His successor wasn't named. The company has retained the Spencer Stuart executive search firm to find his replacement.

Bell chairman Phil Cox said he didn't want to be tied to a timetable but expects to name Mooney's successor "quickly.''

Mooney and Jack Cassidy, chief operating officer, were considered the leading internal candidates to head the company, which is focusing on its local operations to reduce the $2.5 billion in debt left over from the failed broadband investment.

The company abandoned its Broadwing Inc. name in May. Last month, it completed sale of most of its Broadwing Communications unit to a new private company, C III Holdings Inc., for about $100 million.

Matt McGeary, senior research analyst with Fort Washington Investment Advisors, said Mooney's decision to resign suggests that he wasn't on the board's short list of candidates to be CEO.

But Cox said Mooney's decision to leave was his own and not a reflection on the job he did.

"Kevin Mooney did a heck of a job for us and then some,'' Cox said.

Mooney, who has worked for Cincinnati Bell for 13 years, said in a statement that "it's time for new challenges and new opportunities.''

Before being named CEO in September after the sudden resignation of then chairman and CEO Rick Ellenberger, Mooney was chief operating officer and chief financial officer.

Under his employment agreement, which was extended last month, Mooney is entitled to an incentive payment for completing the financial restructuring equal to his annual salary of $660,000 and bonus of up to $660,000 after leaving the company.

Cox said the traits Bell is seeking in its next CEO include leadership, integrity and character.

McGeary said he doesn't know whether the board will lean toward Cassidy as an experienced executive who knows the company, or seek an outsider to bring new leadership. He said an argument for either approach could be made.

But he said the company will need to make a decision soon. The company's quarterly investors conference call is expected next week.

In addition, the company just completed the sale of $500 million in unsecured notes as part of the financial restructuring, and those investors will be anxious to know who the CEO will be.

Cincinnati Bell's shares closed Wednesday at $6.30, off 2 cents.