Hutchison has decided against the sale of its Italian operator on the basis that it won’t get enough money. “Canning Fok, Hutchison Group managing director and 3 Italia’s chairman, said they think a valuation of 7 billion euros ($8.4 billion) for the IPO of 3 Italia is “too low” and to push through the listing would be a disservice to shareholders.”
On the other hand a sale of 10% of the company to Goldman Sachs for 420 million euros ($498 million) was agreed upon because “its valuation price of 9 billion euros ($10.7 billion) for 3 Italia is “fair.” The valuation is calculated based on an estimated debt of 4.8 billion euros ($5.7 billion) by the end of 2006 for the company”.