Telecom Italia Ends Discussion with Hutchison
Telecom Italia SpA ended talks with Hutchison Whampoa Ltd. The said talks were about merging their Italian mobile business units. Telecom Italia preferred to focus on another plan that was to spin off its fixed line network.
Telecom Italia is Italy's largest telecoms player. On Thursday, the company announced that it does not intend to start official talks with the Hong Kong based firm, Hutchison. The company also added that at present there were no elements to start negotiations with Hutchison.
The breakdown of discussion speculations between Hutchison and Telecom Italia could refocus investors to the latter's debts of Eur28.8 billion.
Last April, contacts between Telecom Italia and the Hong Kong based Hutchison were first disclosed. Hutchison Whampoa is backed by magnate Li Ka Shing. However, Telecom Italia postponed a decision on the Hutchison linkup last June. Instead, the Italian company focused on a separate deal to spin off its fixed network and make it an independent firm.
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