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Telecom Italia ends talks on 3 Italia takeover
2013-07-05 08:48:00| Telecompaper Headlines
(Telecompaper) Telecom Italia has ended talks with Hutchison Whampoa on a possible merger of their mobile activities in Italy. At a board meeting on 04 July, the board of Telecom Italia examined the results of its preliminary contacts with Hong Kong-based Hutchison. According to a statement from the company, the board found that "at present there are not the elements necessary to start negotiations". The companies first confirmed the merger talks in early April, but Telecom Italia has repeatedly delayed a decision on entering full negotiations as it seeks certain assurances from Hutchison. The takeover would have strengthened TIM's position as the largest mobile operator in Italy after acquiring Hutchison's 3 Italia, the smallest player on the market. Hutchison would in return have become the largest shareholder in Telecom Italia. The deal reportedly faced resistance from Telefonica, which is part of the controlling Telco shareholders pact at Telecom Italia, and was also hampered by the ongoing discussions over the spin-off of Telecom Italia's fixed network and its valuation.
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Category:Telecommunications