Mobilcom talks as it teeters on the brink

NEWS Mobilcom has begun arbitration talks with France Telecom after the French telco said it plans to sever links with the cash-strapped German mobile operator. The arbitration talks centre on the 40 per cent stake held by Mobilcom CEO Gerhard Schmidt which France Telecom earlier this month said it intended to buy out. How much France Telecom will pay for the stake, and under what conditions Schmidt is expected to leave are still up for debate. However, a withdrawal by France Telecom, which own 28. 5 per cent of Mobilcom, is certain to push the company into bankruptcy.