Telecom Italia targets possible merger with H3G SpA
Telecom Italia’s board could be open to a possible merger with Hutchison Whampoa’s wireless unit H3G SpA, according to reports.
The company has been exploring new ways to strengthen its mobile phone unit and bring in new resources, after it posted a domestic decline of 5.8% in revenue year on year.
The deal, set to be discussed on April 11 at a Telecom Italia board meeting, could see a merger between two of Italy’s main four operators, and give the company’s a combined market share of 45.4%.
Bloomberg reported that the Italian operator could be open to exchanging shares for Hutchison Whampoa’s wireless unit, which has 9.5 million customers, as a cash deal is unlikely.
Another stipulation to a possible merger could also see Telecom Italia offering Hutchinson Whampoa a 5% stake in Telco, Telecom Italia’s majority shareholder, for its Italian unit.
Both Hong Kong-based Hutchison Whampoa and Telecom Italia representatives declined to comment.