Hutchison, VimpelCom restart talks on Italy consolidation – report

Hutchison, VimpelCom restart talks on Italy consolidation – report

05 JUN 2014

The international parent companies of Wind and 3 Italy are back round the table to discuss a merger of their Italian operations, according to Reuters.

Encouraged by the European Commission’s decision to allow consolidation in Ireland, VimpelCom (which controls Wind), has – according to sources – hired Morgan Stanley to advise on the deal.

Hutchison Whampoa, owner of 3 Italy, is working with Goldman Sachs.

Discussion between the two firms have been sporadic over the past six months, but partial refinancing of Wind’s hefty debt (€9.5 billion) – and what seems like a more accommodating attitude from Brussels towards mobile network mergers – has kick-started talks, said sources.

The fiercely competitive and highly regulated Italian market has taken its toll on VimpelCom. Sales from its Italian operation during the first quarter fell 7 per cent, year-on-year, to €1.14 billion. Mobile service revenue was down 11 per cent, to €729 million.


Ken Wieland

Ken has been part of the MWC Mobile World Daily editorial team for the last three years, and is now contributing regularly to Mobile World Live. He has been a telecoms journalist for over 15 years, which includes eight...More

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