German telephone operator MobilCom expects to file for insolvency "very swiftly" following the decision by its major shareholder France Telecom end financial support, a spokesman said today.
"A few things still need to be cleared up. For example, we need to know from France Telecom whether we'll be starting with nearly €7 billion in debt or zero debt. That's a decisive point".
Insolvency would put the jobs of the company's workforce of more than 5,000 in danger.
France Telecom yesterday said it was ditching its German partner in which it holds a stake of 28.5 per cent.
Mobilcom have been in conflict with its parent for months and in today's statement said it may sue France Telecom.
At the same time, MobilCom's founder and former chairman Mr Gerhard Schmid insisted France Telecom's "scandalous and criminal behaviour" must be punished by the courts. The French telecommunications giant "has, by pursuing solely its own interests, completely shirked its responsibilities".
Mr Schmid and France Telecom have been involved in a bitter dispute for months over the astronomic costs of setting up new-generation mobile phone networks, a battle that eventually cost Mr Schmid his job.
AFP
