France Telecom has ended its cooperation pact with German partner MobilCom, and has virtually stopped financing it any further. The move will increase the pressure for a quick resolution to the ownership problem of MobilCom.
France Telecom ended an official agreement binding it to its 28.5% ownership of MobilCom and said that a quick solution with banks was needed to save it. It will no longer fully support the struggling affiliate, but it will provide a few million euros of limited financial support.
The collapse of the cooperation pact had been expected, given the last few months’ fierce fighting between MobilCom CEO Gerhard Schmid and France Telecom over financing obligations.