The owner of Italy’s Wind Telecomunicazioni and Hutchison Whampoa’s 3 Italia have declined to comment on Telecom Italia (TI) CEO Marco Patuano’s recent remarks that the two operators could reach a consolidation agreement within the year.
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The owner of Italy’s Wind Telecomunicazioni and Hutchison Whampoa’s 3 Italia have declined to comment on Telecom Italia (TI) CEO Marco Patuano’s recent remarks that the two operators could reach a consolidation agreement within the year.
A spokesperson for VimpelCom, Wind’s indirect owner, declined to comment on the matter, citing company policy. A spokesperson for Hong Kong-based Hutchison also refused to comment.
Telecom Italia’s new CEO remarked to investors at a recent roadshow that it was “an open secret that Hutch and Wind are once again in talks”, adding that there could be consolidation between the two within the year.
If this were to happen, Patuano said TI would be happy to buy spectrum and towers from the merged competitors.
Telecom Italia and Hutchison were in talks earlier this year about a potential tie-up, but the Italian incumbent decided in July not to pursue it. In a statement at the time, TI said its management had decided the necessary elements to start negotiations were not in place. The potential transaction was politically controversial in Italy and media reported that TI shareholders, including its largest investor group, Telco, were unsure about or opposed the move.
After the talks ended, reports emerged that Hutchison and Wind were discussing a potential merger. Hutchison, whose 3 Italia is the smallest of the nation’s four mobile operators, has sought to boost operations in its European markets. The company is currently awaiting clearance from the European Commission for its €780m merger with O2 Ireland. In January, Hutchison closed its €1.3bn takeover of Orange Austria, reducing the number of players in that market from four to three.
Bernstein analysts said in a recent note to investors that they agree with Patuano that there could be consolidation between Wind and Hutchison within the year.
Wind Telecomunicazioni could not be reached for comment.
