The CEO of MobilCom, Gerhard Schmid, will sell his share in the company to Orange. The deal has been in the pipeline for some time but details were finally settled upon this week. The clincher came after Mr Schmid agreed to lowering the selling price of his stake.
Assuming everything goes as planned, Orange’s parent France Telecom will purchase Mr Schmid’s 42% holding from him at a cost of E17 per share. The CEO had originally proposed France Telecom should pay E22 per share.
France Telecom will offer Mr Schmid Orange shares in exchange for his holding. The other shareholders of MobilCom will be offered E10 per share in cash.