Hutchison 3G funding request snubbed by Dutch partner

25 Apr 2003

KPN Mobile has said that it will not grant a shareholder loan of GBP150 million (EUR217 million) to third-generation mobile operator Hutchison 3G, in which it holds a 15% stake. The Dutch operator has said that it considered the request for funding a purely voluntary invitation and that it was under no legal obligation to Hutchison Whampoa to meet the request. Two weeks ago Japanese mobile operator NTT DoCoMo, which holds 20% of Hutchison 3G, agreed to extend a GBP200 million loan to Hutchison, which needs to renegotiate its financing because its rollout of next-generation mobile services was delayed by two years following numerous software glitches and a shortage of handsets; it has also reportedly slashed its take-up targets by more than 75%.