Hutchison Whampoa's share price tumbled yesterday as it launched a bid to keep the valuation of its Italian mobile operator 3 Italia at Euro9 billion ($83 billion).
Hutchison's share price fell 2.56 per cent to $73.95 after the company shelved the initial public offering of 3 Italia when it failed to fetch the target valuation.
However, a market source said the conglomerate was set to farm out a 10 per cent stake in 3 Italia at Euro420 million to a group of investors in a private placement.
The source said Goldman Sachs, which is arranging and underwriting the placement, had pinpointed several potential investors.
He said the 10 per cent stake for private investors would be outside the scope of the 25 per cent minimum stake necessary for the future spin-off of 3 Italia, which is likely to be relaunched in 12 to 18 months.
This means that 35 per cent of 3 Italia would be in public hands if its third listing attempt is successful.
The placement price of Euro420 million values 3 Italia at Euro9 billion, based on an estimated debt of Euro4.8 billion at the end of this year, according to Hutchison.
