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Italy/Hong Kong: Telecom faces major divestment if Hutchinson deal to continue

By  |  April 16, 2013
Italy/Hong Kong: Telecom faces major divestment if Hutchinson deal to continue

According to reports, Telecom Italia SpA may be forced to divest its strategic fixed-line network to the state if it wishes to proceed with its acquisition by Hong-Kong based Hutchinson Whampoa Ltd. The deal, valued at more than $4 billion, would make the investment holding company the largest shareholder of the telecommunications company. But while the deal would lead to attractive cost-saving opportunities to Telecom, currently riddled with debt, the deal may face political opposition as it may present a negative symbol of foreign ownership of a conglomerate with “strategic national significance,” according to reports. As one of the largest private sector employers in Italy, Telecom is already facing opposition to the deal from politicians who want to see the company remain in Italy’s hands. An anonymous source said Hutchinson is looking to buy 29.9 percent of Telecom.

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    Full Content: Reuters

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