Telecom Italia confirms talks with Hutchison on 3 merger

News Wireless Italy 8 APR 2013
Telecom Italia confirms talks with Hutchison on 3 merger
Telecom Italia confirmed it has held preliminary talks with Hutchison Whampoa over a possible merger with 3 Italia. Telecom Italia said the talks were still at an early stage and it could not comment further. The topic will be discussed by the company's board of directors at a meeting scheduled 11 April, it said. 

The statement follows a request from the securities regulator Consob to clarify earlier media reports that Telecom and Hutchison were considering merging their mobile activities in Italy. Telecom Italia's TIM is already the biggest mobile operator in Italy with almost 35 percent of subscribers at the end of 2012, while 3 Italia had just over 10 percent of the market.

According to the latest press reports, Hutchison Whampoa could end up with a 10 percent stake in Telecom Italia in exchange for merging 3 Italia with the company, daily La Repubblica reported. This would dilute the main shareholder Telco's stake to around 20 percent from the current 22.4 percent. Italian daily Il Sole 24Ore reported separately that Telecom Italia has ruled out allowing Hutchison to acquire any stake over 20 percent, and favours a deal based on combination of cash and shares. 

Categories:

Mobile

Companies:

Telecom Italia,  Hutchison Whampoa,  3 Italia

Countries:

Italy

Tags:

M&A buyouts & divestments

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