Mobilcom, Freenet Agree to Merge

German telephone operator MobilCom has reached agreement with Internet services supplier Freenet, in which it holds a 50-percent stake, on the terms of their planned merger, the two companies said late Monday. The merger would take the form of a share swap, based on a ratio of one Freenet share for 1.14-1.19 MobilCom shares, the two partners said in a joint statement. The final, definitive terms, which are to take into account that Freenet is more profitable than MobilCom, would be set by July, the statement said. At least half of the management board of the combined company would also be appointed by Freenet. MobilCom currently holds a stake of 50.4 percent in Freenet. The merger is part of a general trend for telecoms operators to reincorporate their separately listed Internet units. In Germany, Deutsche Telekom recently delisted and swallowed its T-Online subsidiary. Similar operations have been seen in France with France Telecom and Wanadoo and in Spain with Telefonica and Terra Lycos.