In the multiterminal cut problem one is given an edge-weighted graph a
nd a subset of the vertices called terminals, and is asked for a minim
um weight set of edges that separates each terminal from all the other
s. When the number k of terminals is two, this is simply the mincut, m
ax-flow problem, and can be solved in polynomial time. It is shown tha
t the problem becomes NP-hard as soon as k = 3, but can be solved in p
olynomial time for planar graphs for any fixed k. The planar problem i
s NP-hard, however, if k is not fixed. A simple approximation algorith
m for arbitrary graphs that is g guaranteed to come within a factor of
2 - 2/k of the optimal cut weight is also described.