3 Italia CEO: Sale of Relevant Stake is an Option for Shareholders
MILAN -(Dow Jones)- A sale of a sizeable stake, of at least 30%, in 3 Italia could be an option for the telecom company's main shareholder, Hutchison Whampoa, 3 Italia Chief Executive Vincenzo Novari said Monday.
German giant Deutsche Telekom has recently signalled its interest in buying Hutchison Whampoa's mobile operations across Europe, with a special interest in its 3 Italia unit. Â
"We're always happy to hear that a big group like DT is interested in 3 Italia," Novari told reporters on the sidelines of a press conference in Milan.
"But any decision will be up to (Hutchison Whampoa) shareholders...They've already expressed their willingness to put a value on their 3G investment in Italy. Now they could consider a private sale, or the sale of a sizeable stake in the company, which could be 30% or more."
A spokesman for Deutsche Telekom said the company had no comment to make.
German weekly WirtschaftsWoche reported last week that the head of Deutsche Telekom's T-Mobile arm, Hamid Akhavan, is interested in adding 3 Italia to his business. 3 Italia has signed up 7.7 million 3G users since the operation started in 2003 and is now betting on growth in its data transmission services.
Analysts say that Hutchison's non-3G business - including ports, property, retail - have grown nicely over years, but 3G remains a significant drag. A sale, if done at right price, could help Hutchison Whampoa unlock value from its 3G assets, according to analysts.
-By Giada Zampano, Dow Jones Newswires; +39 02 58219907; giada.zampano@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 29th October 2007