In a terse statement, 3 Italia has firmly denied the story published by Sole 24 Ore regarding the sale of company assets to Italian competitors. The newspaper had reported that Hutchison Whampoa's Italian subsidiary had held talks which could have lead to the break up, and effective shut-down of the network as a going concern.
According to the report, the talks which had allegedly broken down over price, would have resulted in a merger of the firm with Telecom Italia, with the customer base and radio spectrum then being sold off to rival operator, Wind. Telecom Italia would have gained the network and some customer care assets.
The big financial advantage for Telecom Italia would be the absorption of around €2 billion in tax loses accrued by 3 Italia which it would be able to offset against its own profits.
Following the collapse of the talks, the newspaper had reported that a large stake in 3 Italia could now be sold to a Middle Eastern sovereign fund.
Figures from the Mobile World analysts note that 3 Italia ended the first half of the year with around 5.5 million customers - representing a market share of just 6.5%. Wind, which had been reported as planning to take the customer base ended the same period with 16.1 million customers, and a market share of 20.3%. Even merged, the customer base would still be the smallest in the country, behind Vodafone and Telecom Italia Mobile.
Hutchison had tried to float 25% of the company on the local stock market in early 2006, but it cancelled the plans following lack of interest. There have also been vague rumours since then that the company has looked for a trade buyer to take over the company.
On the web: Sole 24 Ore - The Mobile World
Posted to the site on 21st November 2008
Posted to: www.cellular-news.com/story/34771.php