Telecom Italia's board of directors has not made a decision as to the possible partnership woth Hutchison Whampoa until its next meeting to be held on Wednesday. The update was provided by the CEO of the Italian group through a newspaper interview on Saturday.
The group is focusing on the projected spin-off of a part of its network assets. The value of the proposed spin off is between Eur13 billion and Eur15 billion and would form a separate company. This was approved by the board last Thursday, according to Chairman Franco Bernabe.
In an interview with Il Sole 24 Ore, Bernabe said, "What I say is that consolidation in the sector is desirable and necessary. We'll see when the time comes." This was his response when asked about a possible deal with Hutchison.
He added, "For now, the issue is not on the table; there'll be no decision at Wednesday's board meeting. On the table, right bow, there is the network."
Hutchison is seeking to obtain the majority shareholdings in Telecom Italia through a deal that involves the merger of its local unit 3 Italia with the Italian telecommunications giant.
Formally, Telecom Italia said it would need thirty days to review the valuations between Hutchison and its own.
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