mmO2 on the brink of European withdrawal

NEWS The newly spun-off mmO2 is set to cut back its interests in Europe in a bid to staunch heavy losses. The mobile outfit is reportedly ready to pull out of Germany and Holland altogether. In an interview with the Observer, Peter Erskine, the company's chief executive, said: "We are not going to stick in there, come what may. If we are not able to meet our targets, and the businesses fail to perform, we will not hesitate to take remedial action." This could spell the end of the road for mmO2's interests in Germany's Viag Interkom and Telfort of Holland - a move which would be welcomed by fund managers who believe BT paid over the odds to get involved in these territories in the first place.