MobilCom founder Gerhard Schmid has said he will quit as CEO of the German mobile operator, and will sell his stake to a group of banks. The company’s other main shareholder, France Telecom, will drop all legal action against Mr Schmid.
The compromise deal ends months of fighting between Mr Schmid and the French company over MobilCom’s future. France Telecom believes MobilCom will need to merge with a competitor to make money, while Mr Schmid disagreed.
It is not clear whether France Telecom will have to launch a takeover bid for MobilCom. While the French company believes it has avoided this by persuading the banks to take the stake, MobilCom has said a bid may still be triggered.