Hutchison Whampoa might receive about US$736 million, or HK$5.74 billion, less than it had hoped from the disposal of its stake in VoiceStream Wireless, according to Morgan Stanley.
The company will likely receive more shares and less cash from Deutsche Telekom to enable the transaction to be tax-exempt, the investment bank said.
The Deutsche Telekom-VoiceStream merger, expected to be finalised this month, was considered to be the most significant event for Hutchison this year as it expected to book HK$35.9 billion in exceptional profit from the transaction.
Rob Hart, an analyst at Morgan Stanley, said that for the transaction to be tax-exempt, Hutchison was required to take only one-sixth of the consideration in cash.
Under an agreement reached in July, VoiceStream shareholders are to receive 3.2 Deutsche Telekom shares, plus US$30 in cash for each of its holdings.
Assuming all shareholders want to maximise their cash portion, Mr Hart estimated that Hutchison could only gain US$16.93 cash per share, or 43.57 per cent lower than the expected cash proportion.
Holding 56.32 million shares of VoiceStream, Hutchison will receive US$736 million less in cash, or about 30 per cent of its present net cash of US$2.43 billion.
