Re Mobilcom
June 11 2002 - 11:30AM
UK Regulatory
RNS Number:0955X
Orange S.A.
11 June 2002
France Telecom and Orange terminate the Cooperation Framework Agreement with
MobilCom and Mr. Schmid
Paris, London, June 11, 2002 - France Telecom and Orange today issued a notice
to MobilCom and Mr. Schmid terminating the Cooperation Framework Agreement
("CFA") entered into between France Telecom, MobilCom and Mr. Schmid on 23 March
2000, constituting the entire basis of the relationships between the parties.
This follows a series of breaches of the CFA by Mr. Schmid and MobilCom,
including:
• Mr. Schmid and the MobilCom Supervisory Board have repeatedly
misinterpreted the CFA by alleging that France Telecom and Orange's rights
to approve important decisions of MobilCom, such as the Company's business
plan, were not enforceable.
• As evidenced by a report by BDO, Mr. Schmid has breached a number of
articles of the German corporation law in connection with transactions
between MobilCom and Millennium GmbH, a company owned by Mr. Schmid's wife.
• In consideration of the severe breaches of the CFA by Mr. Schmid in
connection with Millennium and his failure to procure the repayment of
approximately €70 million by 6 June 2002 as requested by the Supervisory
Board, France Telecom and Orange recommended that Mr. Schmid either resign
or be dismissed. On two occasions - the Supervisory Board meetings of 29 May
and 7 June - Mr. Schmid refused to resign and the Supervisory Board rejected
motions to dismiss him.
In these circumstances, France Telecom / Orange have clear legal grounds to
terminate the CFA and, in consideration of the loss of confidence that has
occurred between France Telecom / Orange and Mr. Schmid and MobilCom, France
Telecom / Orange have no option but to terminate the CFA.
As a shareholder, France Telecom / Orange will continue to pursue discussions
with various parties concerned about the future of MobilCom in order to
determine whether an acceptable solution can be found.
Press Contacts :
France Telecom Orange S.A.
Bruno Janet, Denise Lewis,
Senior Vice President Group Director of Corporate Affairs
Group Corporate Information Tel. : 44 + (0) 20 7984 2000
Tel. : + 33 (0) 1 44 44 88 71 denise.lewis@orange.co.uk
bruno.janet@francetelecom.com
Nilou du Castel, Niamh Byrne,
Group Press Director France Telecom Head of Media Relations
Tel. : + 33 (0) 1 44 44 93 93 Tel. : 44+ (0) 20 7984 2000
nilou.ducastel@francetelecom.com niamh.byrne@orange.co.uk
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