France Telekom assumes MobilCom debt

MobilCom, the troubled German telecommunications company, announced on Tuesday that it was free at last from its €7.1 billion burden created by its license for the third generation of cell phones, UMTS. The debt, which amounts to $7.5 billion, is being assumed by France Telecom. MobilCom hit the headlines at the beginning of 2002 when former CEO Gerhard Schmid accused France Telecom of breaching a shareholder agreement by vetoing his business plan. The French group promptly halted further funding of the company. Just a week before national elections last September, Chancellor Gerhard Schröder agreed to a €400 million bailout plan in the form of loans from state-run banks to stave off an insolvency filing and save an estimated 5,500 jobs. The company was teetering on the brink of bankruptcy because of France Telecom's decision to withdraw its 28.5 percent stake in the German company.

Porsche sales take a tumble

Porsche's sales in North America fell by 37 percent in February compared with January, the company announced on Tuesday in Stuttgart. Porsche chairman Wendelin Wiedeking (photo) warned on Monday that the ongoing Iraq conflict could hurt the company's sales.

Retail sales reverse downward trend

German retailers, worn down by years of stagnant sales, had something to celebrate on Tuesday. The German Statistical Office announced that in January sales rose for the first time in three months. The office in Wiesbaden said the 4.2 percent growth compared with December was caused by increased sales in food, drinks and tobacco products. Compared with January 2002, the month's sales increased 1.3 percent.