Telecom Italia investor questions Hutchison merger rumours

Telecom Italia investor questions Hutchison merger rumours

A Telecom Italia investor has today claimed he has had no contact with Hutchison Whampoa regarding a possible merger between the two companies, according to local reports.

Marco Fossati, who owns a 5% stake in Telecom Italia, has suggested rumours of a possible deal could be used as a “tactic” in the mobile market by Hutchison Whampoa to bolster the presence of its Italian mobile arm, 3 Italia.

Reports of a possible deal between Hutchison’s wireless unit H3G SpA and Telecom Italia emerged last week – with the Italian operator’s board set to discuss options tomorrow.

“Nobody contacted me. I am happy to see that everybody wants my shares now,” Fossati said to a local newspaper.

"I don't know the details, but from what I read the multiples that are circulating are unrealistic.

“I have always been opposed to this type of transaction, especially when market shares were built on low prices,” added the Italian investor.

Telco, which owns a fifth of Telecom Italia, has also said Hutchison has made no contact over a potential deal.

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