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3 Italia and Wind resume mobile merger talks - report

2014-06-04 13:23:00| Telecompaper Headlines

(Telecompaper) Hutchison Whampoa and VimpelCom have resumed high-level talks about a possible merger of their respective Italian mobile phone units, 3 Italia and Wind Telecomunicazioni, according to unnamed sources cited by Reuters. The chances of a merger going ahead have increased following the EC's approval of Hutchison Whampoa's acquisition of O2 Ireland, said the sources. A partial refinancing of Wind's debt of around EUR 9.5 billion has also created a new momentum for the deal to happen, with the debt refinancing plan announced in April specifically allowing for a change of ownership. Vimpelcom has hired Morgan Stanley to advise on the deal, while Goldman Sachs is working with Hutchison, according to the sources. Italian bank Mediobanca is also expected to have a role. Although the parties have been negotiating for over six months and reportedly came very close to agreeing a deal in December, Wind's debt has proved a stumbling block. In March Italian daily La Repubblica suggested that certain assets such as mobile towers and Wind's fixed line business Infostrada could be sold to reduce debts and clear the way for a deal.

Tags: report mobile italia wind

Category:Telecommunications

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