LONDON - John Browne, chief executive of British energy giant BP, unexpectedly resigned Tuesday after a newspaper group won a legal battle to publish details of his relationship with another man.
Browne had been due to retire in July after 12 years at the helm of Europe`s biggest energy group -- but will now be replaced immediately by his chosen successor Tony Hayward, BP said in a statement.
"Browne tendered his resignation after the lifting by the UK courts of a legal injunction preventing a newspaper group from publishing details of his private life," the group said.
BP added that as a result of Browne`s decision to resign, he would lose his entitlement to a leaving package worth 3.5 million pounds (5.15 million euros, 7.0 million dollars) and a potential 12 million pounds worth of shares.
Browne, 59, has failed to prevent Associated Newspapers publishing a story about his relationship with Canadian Jeff Chevalier, his former partner of four years.
"In my 41 years with BP I have kept my private life separate from my business life," Browne said in the BP statement.
"I have always regarded my sexuality as a personal matter, to be kept private. It is a matter of deep disappointment that a newspaper group has now decided that allegations about my personal life should be made public.
"Concerning the court documents disclosed today, I wish to acknowledge that I did have a four-year relationship with Jeff Chevalier who has now chosen to tell his story to Associated Newspapers, publishers of The Daily Mail, Mail on Sunday and Evening Standard.
"These allegations are full of misleading and erroneous claims. In particular, I deny categorically any allegations of improper conduct relating to BP," Browne added.
However, Browne added that in initial witness statements, he had lied about how he had first met Chevalier.
"This account, prompted by my embarrassment and shock at the revelations, is a matter of deep regret. It was retracted and corrected. I have apologised unreservedly, and do so again today," Browne said.
05/01/2007 15:22 GMT