CK Hutchison and VimpelCom are reportedly in talks with a number of companies, including France’s Iliad and broadcaster Sky, over the sale of assets made available from the proposed tie-up in Italy, in a bid to address regulatory concerns over the deal.

VimpelCom, parent of Wind, and CK Hutchison, owner of 3, announced a proposed merger of their respective units in Italy last summer, and the deal is currently going through phase two of the European Commission’s (EC) rigorous review process.

In light of Hutch-owned 3 UK’s failed merger with O2, blocked by the EC this month, there are fresh concerns over the deal in Italy which, like the UK merger, would reduce the market from four to three players, as well as propel the merged entity to become the country’s market leader, ahead of incumbent Telecom Italia.

According to the Financial Times, both Iliad and Sky have spoken to Hutch and VimpelCom about potentially creating a fourth operator in the country, while Swisscom-owned Fastweb is also rumoured to be interested in mobile towers and frequencies possibly available from the deal.

It is reported that both Hutch and VimpelCom believe the only way to push the deal through EU regulation would be to enable the entrance of a new competitor in the market.

Wind and 3 Italia have now reached out to potential buyers, adds Bloomberg, offering to sell redundant frequencies and about 5,000 wireless towers, in a bid to win over the EU.

The publication claimed regulators are “said to be preparing formal objections” to the Italian deal, with a final decision due 18 August.

Iliad founder Xavier Niel, who has tried and failed to break into new markets in recent years, including the US, also holds stock options equivalent to more than 15 per cent in Telecom Italia, so an investment in a new Italian operator would raise further questions about his strategy in the country.

Notably, French rival Vivendi is Telecom Italia’s largest shareholder.

Sky, meanwhile, could reportedly back Iliad, or other bidders, to gain network access in the country.

Both Hutchison and VimpelCom have expressed confidence in getting the Italian merger approved, in recent weeks.