Hutchison float to fund 3 networks

LI KA-SHING, who heads Hutchison Whampoa, is to float the group's Asian telecoms interests in what analysts said was a move to bolster its cash-hungry, third-generation mobile phone 3 networks in the UK and Italy.

Hutchison is putting together its Hong Kong, India, Israel, Thailand, Macau, Sri Lanka, Ghana and Paraguay interests in fixed and second-generation mobile phones, which together service some 10 million customers.

Analysts said the business could be valued at about $4bn (£2.19bn), allowing Li Ka-shing to raise around $1bn in new cash.

However, that would go only a short way to funding the 3 networks, which last year lost $2.3bn before interest and tax charges, and are expected to lose about $2.6bn this year.

In the UK, 3 has embarked on a price-cutting exercise to drive takeup of its video phones.

The new company, Hutchison International Telecoms, will be listed on the Hong Kong stock exchange and the flotation could take place in between two and six months' time.