VimpelCom, the owner of Italy’s third-largest mobile operator Wind, has failed to reach an agreement regarding a potential 50:50 joint venture in the country.
Responding to recent media speculation about a possible tie-up with Hutchison Whampoa’s 3…
VimpelCom, the owner of Italy’s third-largest mobile operator Wind, has failed to reach an agreement regarding a potential 50:50 joint venture in the country.
Responding to recent media speculation about a possible tie-up with Hutchison Whampoa’s 3 Italia, the telecoms group acknowledged that it has held discussions aimed at exploring the value a JV would accrue to its shareholders.
However, it added that “no conclusion to these discussions was reached.”
VimpelCom, which is partly-owned by Russian billionaire Mikhail Fridman, said it would continue to look at “value adding” opportunities in the Italian market, but stressed that it might not be able to identify a deal “on terms acceptable to the company”.
Rumours of a merger between Wind and its smaller rival 3 Italia emerged over a year ago, although the two companies have never confirmed they were negotiating a deal.
In June, media reports suggested that VimpelCom had hired Morgan Stanley, while 3 Italia had appointed Goldman Sachs for advice on a potential tie-up.
Before that, in November 2013, Telecom Italia’s CEO Marco Patuano had told investors that it was “an open secret” that Hutchison and Wind were in talks, adding that there could be consolidation between the two within the year.
Telecom Italia itself had also discussed a potential tie-up with Hutchison in early 2013, but the Italian incumbent decided not to pursue the matter.
Hutchison first entered the mobile telecoms market in 1983 and its 3 Group Europe now operates in the UK, Sweden, Denmark, Austria, Italy and Ireland.
VimpelCom has operations in 14 countries worlwide. Last month, it sold its stake in Canada’s Wind Mobile to its controlling shareholder Globalive Capital for C$135m (US$122.4m).
Wind and 3 Italia declined to comment.
