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Merrill Lynch says if MobilCom went bankrupt other players would benefit.

Europe Intelligence Wire

| August 10, 2002 | COPYRIGHT 2002 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From FT Investor (Pulses))

If MobilCom [s :DE:662241] were to go bankrupt, it would be a positive for the other mobile phone carriers in the German market, Merrill Lynch claimed. MobilCom was rescued from insolvency in September by a [euro]400m ($391m) government-sponsored bailout after France Telecom , its partner and financier, said it would stop funding the German group's liquidity needs. A MobilCom demise would create some interim downside for Deutsche Telekom subsidiary, T-Mobile , Vodafone and KPN , but one fewer competitor would ultimately be positive, Merrill argues. MMO2 [s :UK:OOM] would also be a beneficiary, Merrill suggests, as the company currently does not have resale subscribers on its German network and may well be able to pick up incremental subscribers if they depart ...

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