New York ? The executive who stepped down earlier this week as Hewlett-Packard’s president was named Friday as chairman and chief executive of troubled WorldCom Inc., the telecommunications giant that is mired in the biggest bankruptcy in U.S. history.

Michael Capellas takes over the top two jobs as WorldCom tries to reorganize its operations, overhaul its accounting, remake its corporate image and remain a strong competitor in the slumping telecommunications industry. The company admitted a $9 billion accounting fraud earlier this year.

Capellas’ selection had been widely rumored after he stepped down Monday as president of Hewlett-Packard, which bought Compaq Computer Corp. for $19 billion in May. He had been Compaq’s chief executive before that deal went through.

Capellas replaces John Sidgmore as chief executive at WorldCom, the Mississippi-based telecommunications provider which sought bankruptcy protection in July.

Bert C. Roberts had been chairman.