Hutchison Whampoa's Italian mobile unit, 3 Italia, has gained listing approval but is still awaiting final clearance from the securities market regulator before it begins its long-awaited Euro2 billion ($18.6 billion) initial public offering.
While the Italian stock exchange's approval nudged the offering closer to a planned March date, analysts said its targeted Euro9 billion to Euro12 billion valuation looked increasingly difficult to achieve, given recent investment bank downgrades for key European telecommunications counters.
Borsa Italia, the Milan exchange, on Friday said it had approved 3 Italia's application and it would set a time for its debut later.
The 91 per cent held 3G mobile unit of Hutchison Whampoa has until February 14 to get approval from the Italian securities watchdog, Commissione Nazionale per la Societa e la Borsa (Consob).
'I expect Consob's approval would come through over the next few days - but their requirements are quite strict,' said Riccardo Monti, director and head of telecommunications and media practices at management consultancy firm Value Partners.
Hutchison's Italian unit missed its offering target last year, citing a need to complete the purchase of mobile television firm Channel 7. It wants to position itself as a media firm, not just a mobile operator.
This year, more challenges appeared as bankers and management reportedly wrangled over the unit's valuation.
