Hutch IPO deferred again

13 Feb 2006

Hong Kong-based Hutchison Whampoa has announced that it will postpone the IPO of its Italian 3G unit, citing weak market conditions. The operator said that the valuation of EUR7 billion (USD8.4 billion) was too low and has opted to sell 10% of the cellco to investment bank Goldman Sachs for EUR420 million (USD498 million) through a pre-IPO private transaction. Goldman Sachs valued the company at EUR9 billion (USD10.7 billion), which Hutch considers to be a fairer price. The decision comes after the IPO was approved by Italy’s securities watchdog Consob last week.