Nokia and Ericsson may agree to convert E1.1 billion of loans to MobilCom into shares in Orange, the wireless division of France Telecom. This is the latest development in a long running dispute between the mobile equipment makers and the German mobile operator.
The board of France Telecom has been discussing how it can resolve the problems arising from its 28.5% stake in MobilCom, although it has not managed to find a final solution.
So far France Telecom has achieved a verbal agreement with banks to refinance E4.7 billion worth of MobilCom loans. It is still trying to resolve the issue of the outstanding loans MobilCom obtained from Nokia and Ericsson.