The Board of Directors of Hong Kong conglomerate, Hutchison Whampoa Limited (Hutchison), Saturday announced a decision to defer the planned initial public offering (IPO) of its Italian 3G unit - 3 Italia SpA (3 Italia).

Though 3 Italia has received all necessary regulatory approvals required to list, "the window for executing an IPO is very short and would require the IPO to be completed in the next few weeks," Canning Fok, Hutchison's Group Managing Director and 3 Italia's Chairman said.

At the same time, current market conditions for European telecom stocks are weak, Fok said, doubting the market would not ascribe an appropriate valuation to 3 Italia's business on its IPO in the circumstances.

Fok believed it is important for 3 Italia to conduct an investor education campaign, which should comprise a full international roadshow presentation and analyst updates with a view to clearly differentiating the outlook for 3 Italia's business and the progress it has made in developing its unique business model from that of the incumbent mobile operators in Italy and the rest of Europe.

"I believe these decisions will contribute to a better understanding of 3 Italia's business in the marketplace and will result in Hutchison shareholders to recognize the value of their investment in both 3 Italia and our other 3G businesses to go forward," Fok said.

Investing in various fields from ports to telecommunications, Hutchison has expanded 3G operation in overseas markets, including those of Britain, Australia, Austria, Ireland, Denmark, Sweden and Israel.

Goldman Sachs, who was acting as one of the Joint Global Coordinators, has agreed to arrange and underwrite a structured pre-IPO transaction involving a private placement of an effective 10 per cent indirect share interest in 3 Italia held by Hutchison for 420 million euro (500 million US dollars), according to the Hutchison's website.

Source: Xinhua