re: France Telecom assuming MobilCom debt.
This is interesting in light of Nokia's EUR Q3 writedown this quarter:
[France Telecom] will take on ... EUR1.2 billion in financing agreements with Nokia and Ericsson, the newspaper said.
From Nokia's Q3 earnings statement:
MobilCom write-off - EUR 306 million: As outlined in the September mid-quarter update, Nokia has agreed with France Telecom the principle terms of converting Nokia's outstanding receivables from MobilCom. At the same time, the remaining financing commitment to MobilCom of approximately EUR 530 million will not be made available. These arrangements with France Telecom, however, are subject to the overall resolution of the MobilCom situation. During the third quarter, the negative impact on Nokia of the MobilCom exposure was EUR 306 million. In an agreement with MobilCom Nokia has ceased all deliveries to them.
>> France Telecom To Assume EUR 7.5 Billion MobilCom Debt
Dow Jones
October 18, 2002
France Telecom intends to assume about EUR7.5 billion in debt from MobilCom AG , the German telecommunications company in which it holds a 28.5% stake, the Handelsblatt newspaper reported Friday.
France's biggest phone operator will take on a EUR4.7 billion loan for MobilCom's third-generation mobile network, EUR1 billion in shareholder loans, and EUR1.2 billion in financing agreements with Nokia and Ericsson , the newspaper said.
France Telecom will pay MobilCom EUR485 million to halt development of the 3G network, Handelsblatt added.
In return, MobilCom will agree not to seek damages from France Telecom, the newspaper said.
A memorandum of understanding will be signed within two weeks, although it's unclear whether MobilCom founder and 40% shareholder Gerhard Schmid supports the plan, Handelsblatt said.
MobilCom's future has hung in the balance since France Telecom, struggling to reduce debt, decided last month to halt financing for its German partner.
The Financial Times reported Friday that France Telecom had denied reaching a settlement with MobilCom.
The agreement negotiated by Eric Bouvier, a France Telecom representative, and MobilCom supervisory board member Dieter Vogel, didn't, and wouldn't, include a write-off of inter-company loans nor extra funding, the FT said, citing France Telecom spokesman Bruno Janet. <<
- Eric - |
