France Telecom severs MobilCom umbilical cord

Shares tumble 50 per cent...

By Kate Hanaghan, 12 June 2002 09:15

NEWS Shares in German mobile operator MobilCom yesterday lost almost half their value after France Telecom cut its links with the company. The French telco said it would terminate relations with MobilCom after it refused to sack its chief executive, Gerhard Schmid. Shares in MobilCom were suspended after plummeting 46 per cent to E7.25 during trading yesterday. France Telecom is a huge financial crutch for the company and without its support it faces insolvency. The telco will, however, provide funding for a short period to give MobilCom one last chance to restructure its debt.

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