Telecom Italia’s board of directors has postponed discussing a potential tie-up with Hong Kong-based Hutchison Whampoa until a later, unspecified date.
The board was expected to discuss the potential combination with Hutchison’s mobile unit 3 Italia…
Telecom Italia’s board of directors has postponed discussing a potential tie-up with Hong Kong-based Hutchison Whampoa until a later, unspecified date.
The board was expected to discuss the potential combination with Hutchison’s mobile unit 3 Italia at a meeting today, although CEO Franco Bernabe told Italian newspaper Il Sole 24 Ore over the weekend that no decision would be taken.
The Italian incumbent issued a short statement today saying only that the board, chaired by Bernabe, “did not discuss the possible integration with 3 Italia, postponing the matter to a future meeting”.
Bernabe told the Italian paper over the weekend that the focus of the meeting would be on the planned spinoff of its fixed-line network, said to be valued at up to €14bn. The board approved a plan to separate the network into a private company last week.
When questioned about the potential deal with Hutchison, Bernabe replied that consolidation within the sector is desirable and necessary, adding that “we will see when the time comes”.
The Milan-based telco first confirmed it was in preliminary talks with Hutchison in early April and, early this month, the board authorised an in-depth examination of the potential transaction. An internal committee advised by Credit Suisse recommended this examination be completed within 30 days.
