MobilCom Founder Admits He Sold Shares

Gerhard Schmidt, founder of the crisis-ridden German telecommunications firm MobilCom admitted on Monday he sold up to 8 percent of his 40-percent share of the firm right after he left in June. The move would have been legal, but some accused Schmidt of selling his share in order to undermine the troubled company. Schmidt denied the charge. Meanwhile, time appears to be running out for the firm, which has still not agreed to file for insolvency after it’s parent company, France Telekom, pulled the plug in September. Talks between Schmidt and the German government for a re-financing deal have reached a standstill, a spokesperson for the firm said. Schmidt has so far refused to turn the company over to the government’s preferred liquidators.