Hutchison Whampoa is in talks with Deutsche Telekom to extend the lock-up period for its remaining holding in the German company, according to analysts. Senior Hutchison management are to travel to Germany next week to try to solve the share overhang problem, which has been hitting the share prices of both companies. '[Hutchison] management indicated that an extension of the lock-up period for a period of years rather than months is one option they are looking at,' Goldman Sachs analyst Mike Warren said yesterday after speaking to senior Hutchison executives. Hutchison owns 171.5 million Deutsche shares. It will be free to sell 47.1 million shares after September 1, and the remaining 124 million after December 1. Analysts said extending the lock-up period could help stabilise Deutsche's falling share price and hence indirectly benefit Hutchison. Shares in Deutsche Telekom have fallen more than 35 per cent in three weeks on concerns that Hutchison and other shareholders have been selling down. Carl Wong, an analyst at HSBC Securities, believed that an extended lock-up period could come with criteria to protect the interests of Hutchison shareholders, such as a guaranteed dividend rate. On Thursday, Hutchison chairman Li Ka-shing said the company was looking to reach consensus with Deutsche Telekom to solve the share overhang problem. This followed the company's confirmation that it had disposed of 35.5 million Deutsche shares on August 7. Goldman Sachs said Hutchison sold the stake at 25.45 euros, raising 900.9 million euros (about HK$6.4 billion). Deutsche share price rebounded 6.6 per cent in yesterday's early session. At midday it was at 17.66 euros. Meanwhile, Vodafone Group, in which Hutchison has a 3 per cent stake, rose 3.5 per cent to 134.5 pence in early trading. A Hutchison spokesman yesterday denied a Financial Times report that it was keen to sell both its Deutsche and Vodafone shares. The newspaper later carried a report with Hutchison's denial, but stood firm on the suggestion that the company intended to sell the shares. Hutchison shares yesterday rose 25 cents to close at HK$67 on the back of a better-than-expected interim result and a possible solution on the Deutsche shares. Merrill Lynch analyst Christine Leung said that while the negative news flow might not be over yet, Hutchison's present share price could represent good long-term value. Group managing director Canning Fok Kin-ning, along with two other senior executives, is believed to have bought Hutchison shares in the market yesterday. The maximum price believed to have paid was HK$68.25. The number of shares bought was not known. Executives increasing their stake in Hutchison is a sign of confidence in the company's future, and could trigger buying interests from investors.