Hutchison Whampoa unit 3 Italia and Telecom Italia reportedly held talks on a merger but the two parties unable to reach a conclusion. 3 Italia’s Chief Executive, Vincenzo Novari, said, the prospective deal broke down on price and market competition issues. “There were differences on the share swap ratio. The value attributed to the Telecom Italia shares was too high for us. The difference has stopped the operation,” Novari added.

Novari Further said, there were four options for the future of 3 Italia, which operates a third generation mobile telephone network, including videotelephony and handheld TV.

One is the merger with Telecom Italia, which would include Italy’s telecom operator Wind taking over 3 Italia customers and technology. According to Novari it was “the least probable” option.

The other options available are a sale to a Middle East sovereign fund, the sale to a non-European operator of a 50 percent stake in H3G, the company which owns the 3 brand, and 3 Italia continuing as an independent company, he added.
He has excluded the possibility of “a break-up” of 3 Italia, along the lines of Italy’s Blu telecom operator in 2002, which saw its assets such as tax losses, radio frequencies and subscribers going to different rivals.

If 3 Italia is thinking in- line of break-up of the activities, they will not launch new initiatives, said Novari.