Telecom Italia Chairman Updates Progress

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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.

Tags
Buyout, Telecom Italia, Hutchison Whampoa, Merger

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