Hutchison "Categorically Denies" Sale Of 3G Business"

HONG KONG -(Dow Jones)- Conglomerate Hutchison Whampoa, Friday denied it is selling its European third-generation mobile phone businesses to China Mobile, following a UK online report that said a deal is being finalized.

"We categorically deny that we are selling any of our 3G businesses. We have no plans to do so," said Laura Cheung, a spokeswoman at Hutchison.

Late Thursday, an article that appeared on the UK-based Web site newwiresless.net said Hutchison will disclose the sale of its Italian and UK 3G franchises to China Mobile by the end of Friday.

China Mobile spokeswoman Rainie Lei also denied the report, but declined to comment further.

Other than a rumor that China Mobile planned to buy both 3 UK and 3 Italia, Hutchison also denied speculation that China Telecom is planning to buy 3 Italia.

Shares of Hutchison Whampoa spiked more than 5% on the reported sale. At 0724 GMT, Hutchison was up 2.8% at HK$78.10. China Mobile was down 1.3% at HK$61.35.

-By Jeffrey Ng and Ernest Kong, Dow Jones Newswires; 852-2802-7002; jeffrey.ng@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 15th December 2006