Hutchison Whampoa would want to control any company created by merging its 3 Italia mobile unit with Telecom Italia's (TI) cellular operations. Hutchison would become TI's largest shareholder as part of the deal, possible causing the unravelling of the Telco consortium that holds 22.4% in the former monopoly. Telco includes Telefonica (TEF), Intesa Sanpaolo (IITOF.PK) and Mediobanca (MDIBF.PK). TI is also looking at spinning off its wireline operations. Shares +4.3% in Milan.
BofA (BAC) and Mediobanca (MDIBF.PK), the lead underwriters for UniCredit's €7.5B share offering, have reportedly agreed to buy 10% of the offering, or €750M, should it fail completely, and a smaller amount of shares if the offering is only partially successful. UniCredit is off 36% this week.
Yesterday's extension of short-selling bans on bank stocks in several EU countries is mostly failing to do the business: STOXX Europe 600 Banks -2.1%, SocGen (SCGLY.PK) -2.3%, Credit Agricole (CRARY.PK) -1.3%, and Mediobanca (MDIBF.PK) -0.9%, but UniCredit (UNCFF.PK) is +3%.