Telecom board set to discuss 3 merger; Hutch hires Goldman Sachs to examine deal

5 Apr 2013

According to Bloomberg, Telecom Italia’s (TI’s) board plans to evaluate potential mergers and acquisitions at a meeting scheduled for next week, with a view to bolstering the company’s existing mobile business. Two people with knowledge of the matter told the news agency that the 11 April meeting will see the board discuss a potential combination with Hutchison Whampoa’s 3 Italia mobile unit. While TI is thought to be keen to eliminate a competitor, sources have indicated that the Milan-based company does not want to splash the cash.

Meanwhile, the merger speculation has been given added credibility by la Repubblica, which reports that Hutchison is working with Goldman Sachs Group to examine the possibility of merging 3 with Telecom Italia.