MobilCom's Former CEO Schmid To Sue France Telecom

FRANKFURT (Dow Jones)--The former chief executive and founder of MobilCom AG (MOB.XE), Gerhard Schmid, has sued France Telecom SA (FTE) for EUR4.256 billion in damages plus interest, Schmid's insolvency administrator said Thursday.

Schmid accuses France Telecom of having illegally pulled out of a 3G mobile technology partnership, leaving Mobilcom short of funds to develop its 3G network.

According to the insolvency administrator, Jan Wilhelm, Schmid's chances of winning the case are "very high." However, he conceded that the trial may last for several years.

Schmid was forced to leave Mobilcom following a dispute with shareholder France Telecom.

The French company holds a 28.3% stake in the German company, according to the Mobilcom Web site.

Company Web site: http://www.mobilcom.de

-By Kirsten Bienk, Dow Jones Newswires; +49 69 29 725 500; djnews.frankfurt@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 23rd December 2004