Hutchison Stands Slim Chance of Winning EC Appeal

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Event-Driven

On May 11, Margrethe Vestager, the EU competition commissioner, rejected CK Hutchison's 3 UK's proposedacquisition of Telefonica's U.K. division O2 UK.We had thought the odds of approval were about 50%, so we aren't surprised by the rejection.We think this makes approval of CK Hutchison's 3 Italia's proposed merger in Italy with VimpelCom's Wind division highly unlikely.Competition is much lower in Italy, as evidenced by fewer mobile virtual network operators and much higher EBITDA margins.Analysts: Dan Baker &amp; Lorraine Tan

On May 11, Margrethe Vestager, the EU competition commissioner, rejected CK Hutchison's 3 UK's proposedacquisition of Telefonica's U.K. division O2 UK.We had thought the odds of approval were about 50%, so we aren't surprised by the rejection.We think this makes approval of CK Hutchison's 3 Italia's proposed merger in Italy with VimpelCom's Wind division highly unlikely.Competition is much lower in Italy, as evidenced by fewer mobile virtual network operators and much higher EBITDA margins.Analysts: Dan Baker &amp; Lorraine Tan

EU Competition Commission Rejects 3's Acquisition of O2; Telefonica's Shares Undervalued

CK Hutchison Holdings

EU Competition Commission Rejects 3's Acquisition of O2; Telefonica's Shares Undervalued