The managing director of Hong Kong conglomerate Hutchison Whampoa has strongly denied claims that it could be looking to sell its Italian mobile operator 3 Italia.
“I do not understand why we should sell 3 Italia, when the dream that we have [held…
The managing director of Hong Kong conglomerate Hutchison Whampoa has strongly denied claims that it could be looking to sell its Italian mobile operator 3 Italia.
“I do not understand why we should sell 3 Italia, when the dream that we have [held for] ten years is becoming a reality,” Canning Fok told local publication Corriere della Sera in an interview confirmed by a 3 Italia spokesman.
The MD pointed out that the company had heavily invested in the data traffic business, which was now taking off.
Corriere Della Sera reported in September that incumbent Telecom Italia had informally mandated Goldman Sachs and BoA Merrill Lynch to consider acquiring 3 Italia. Reports had valued the group at E4.3bn, including some tax losses.
Back in November 2008, Italian publication Il Sole 24 Ore cited 3 Italia CEO Vincenzo Novari saying that TI and 3 Italia had discussed a merger plan, but that this fell through because of disagreements about the price and concerns over antitrust regulations.
However, Fok told Corriere Della Sera that there is enough room in the Italian market for current mobile operators TI, Vodafone, Wind and 3. He compared the situation in Italy with that in other countries that also have four competitors, mentioning Austria, Sweden, Denmark, Germany, Spain and the UK.
If there was consolidation in Italy, 3 Italia would be a protagonist. Hutchinsons has US$11bn to invest, he said, saying the company wanted to be a consolidator in Europe.
The 3 Italia spokesman was unable to elaborate on Fok’s comments.
In related news, 3 Austria, Hutchinson’s Austrian mobile operator, is reportedly preparing to initiate a takeover bid for its larger local rival Orange Austria.
Merrill Lynch is conducting due diligence on Orange Austria in mind for a binding offer in around eight weeks, according to reports citing local news site News.at.
France Telecom, which owns 35% of the group, announced in June that it does not intend to remain in countries where it is only a minority shareholder, following a review of its European asset portfolio. PE firm Mid Europa owns the remaining 65% of Orange Austria.
But both FT and Mid Europa were unable to comment on the speculation before the press deadline.
3 Austria, which declined to comment, is the smallest operator in the country, behind incumbent Telekom Austria, T-Mobile and Orange.
