&c1=usa&c2=(none)&c3=The+Guardian&c4=Media+business,Business,Media&c5=&c6=Richard+Wray&c7=2002_03_27){kind=small}
- The Guardian,
- Wednesday March 27 2002
France Télécom yesterday looked close to extricating itself from a bitter row with its German mobile phone partner MobilCom under a complex deal which will see a consortium of banks buy out MobilCom's boss Gerhard Schmid.
Under yesterday's proposal, Mr Schmid, who owns a 39.4% stake in MobilCom, and "associates" will sell their shares to a group of banks understood to include some of MobilCom's main lenders.
The banks are expected to pay €22 (£13.50) a share, about twice MobilCom's current share price. Under the deal the banking consortium will hold the stock, while Orange, majority owner by France Télécom, will advise on strategy.
After an escalating row over who should fund MobilCom's future, Mr Schmid had threatened to force France Télécom, which already owns 28.5% of the company, to buy out his stake. That would have triggered an all-out bid for the rest of the firm and saddled the indebted French operator with Mobilcom's €6bn of debt. France Télécom is already €61bn in the red.
France Télécom was adamant that under this deal it would not have to pick up all of MobilCom's debts. It also said it was not pushing the consortium to do a deal and while it would help fund MobilCom's future it would not buy the banks out of the business - yet.
