Hutchison Unit 3 Italia's CEO Says Company Not For Sale

MILAN -(Dow Jones)- The Italian unit of telecommunications conglomerate Hutchison Whampoa 3 Italia, isn't for sale, the unit's chief executive said Thursday.

"Many would like to buy it, but the answer is the same for all of them: 3 Italia is not for sale," Vincenzo Novari said in a statement.

Hutchison Whampoa has repeatedly denied heightened media speculation that it was planning to offload its 3G business across Europe.

Vodafone Group Chief Executive Arun Sarin recently said that if the 3 UK business was to become available, Vodafone would register its interest.

The Chinese-language Ming Pao Daily recently cited a person familiar with the situation as saying the Hong Kong conglomerate is in talks to cooperate with France Telecom's unit Orange, with one possibility being the complete sale of Hutchison's European 3G operations to the company.

"There are no talks to sell 3 Italia or Hutchison Whampoa's 3G businesses. The interest showed by many companies demonstrates that 3 Italia is appetizing and that we did a good job," Novari said.

Hutchison has 3G operations in countries including Italy, Norway, Denmark, the UK, and Ireland.

Hutchison Whampoa's planned listing of its Italian 3G unit on the Milan stock exchange in February was derailed because of a valuation that was less than Hutchison had hoped for.

Hutchison's shares have sharply underperformed the broader market this year, as investors shunned the stock on the uncertain outlook of its 3G businesses.

Traders say investors would welcome a sale, because a disposal of Hutchison's 3G operations would remove the uncertainty.

Hong Kong tycoon Li Ka-shing, who is the chairman of Hutchison Whampoa, said at the company's presentation of its first-half results in August that Hutchison Whampoa would only consider floating 3 Italia when it became profitable.

The company had also planned to float its 3G operations in the UK.

The conglomerate doesn't expect the 3G business to break even on a key profitability measure for the full year.

-By Giada Zampano, Dow Jones Newswires; +39 02 5821 9907; giada.zampano@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 23rd November 2006