Telecom Italia’s board of directors plan to discuss the possible tie-up with Hong Kong-based Hutchison Whampoa’s local mobile unit at a board meeting next Wednesday (5 June).
Speaking on the sidelines of the Bank of Italy’s annual meeting in…
Telecom Italia’s board of directors plan to discuss the possible tie-up with Hong Kong-based Hutchison Whampoa’s local mobile unit at a board meeting next Wednesday (5 June).
Speaking on the sidelines of the Bank of Italy’s annual meeting in Rome, TI CEO Marco Patuano said the potential deal would be discussed at the meeting, a company spokesperson confirmed.
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.
Neither TI nor Hutchison has provided details of their talks in accord with a confidentiality agreement. However, it has been speculated that the Hong Kong conglomerate is targeting a majority stake in TI.
On a conference call earlier this month, TI CEO France Bernabe said the company was still assessing the “feasibility” of deal with Hutchison. He noted that such a deal would be complex and face antitrust and other hurdles.
Earlier this week, the TI board approved a plan to spin off the company’s fixed-line network, reportedly valued at up to €14bn (US$18.16bn), into a private company.
The market has speculated that a fixed-line network spinoff agreement would make a deal with Hutchison more palatable to authorities.