MobilCom thrown E400m lifeline

NEWS Struggling German mobile phone outfit MobilCom has been given a stay of execution thanks to a E400m cash injection from the German government. Two German state banks have come up with the funds to keep MobilCom going, rescuing - at least for the time being - 5,500 jobs. The company, which is struggling to recoup the money paid out for its 3G licence, was left teetering on the edge of bankruptcy last week following France Telecom's decision to withdraw its backing last Thursday. Chief executive Gerhard Schmidt also quit last week. The government is convinced that MobilCom still has a claim against France Telecom, and would support any legal action launched by the company. France Telecom first said it would pull out back in June, but continued to provide funds to keep it afloat in the short term.