The Anglo File: Bidders in Dutch Mobile Auction Tiptoe Through a Minefield

LONDON -- The increasingly acrimonious dispute between two of the participants in Holland's recent auction for third-generation mobile-phone licenses has taken a turn for the worse as VersaTel and British Telecom's Telfort accused each other of lying, and the Dutch competition authorities raided the offices of both telcos on Friday.

Aside from the obvious unsightliness of two companies arguing in public, this spat could further damage a sector already seriously wounded by fears about high debt levels, further downgrades by rating agencies and refinancing problems. Already, national governments are investigating allegations of collusion between the operators, and there is the specter of the European Commission becoming involved and the awful possibility that some auctions may have to be held again.

On Thursday, BT (BTY Quote) shares closed down 28p, or 3.5%, at 762, Holland's KPN (KPN Quote) fell 0.81 euros, or 3.6%, to 22.03 and Vodafone (VOD Quote) finished 23.75p lower, or 8.6%, at 253. ...