It is viewed that Hutchison Whampoa is eyeing a 29.9% stake in Telekom Italia. This is part of a deal that would give the Italian company local business in the country 3 Italia an opening in the market.
The purchase was confirmed by Italian newspaper Il Messagero. As soon as the report came out, Telecom Italia share values increased by 5% and even at closing, retained a 3.4% increase overall. Hutchison would be offering Eur1.20 in cash per share in addition to 3 Italia shares in Telecom Italia.
This offer is double the current market offer for Telecom Italia shares but is the same value booked in the accounts of shareholders. The Telecom Italia board is expected to negotiate the terms of the possible purchase of 3 Italia in its board meeting.
The Italian group is owned by Telco, a holdings company which also has in its portfolio Spanish Telefonica, Italian Generali, Intesa Sanpaolo and Mediobanca.
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