Hutchison Whampoa is likely to miss its preferred deadline for the spin-off of its Italian mobile-phone unit 3 Italia.
The conglomerate, in a statement to the stock exchange yesterday, said the delay was due to regulatory issues, with the firm awaiting listing approval and the final decision of the 3 Italia board.
Hutchison had planned to list the unit by the end of the year, making it the world's first pure 3G listed telecommunications firm and the first valuation of the unprofitable 3G business that has swallowed US$25 billion of the parent company's assets globally.
'There can be no assurance that approval by Consob and Borsa Italiana of the listing of the 3 Italia shares ... will be granted,' the statement said.
The Hong Kong stock exchange has already approved the deal which sources said aimed to raise Euro2.5 billion ($22.64 billion) from the sale of up to 25 per cent of the Milan-based company.
One analyst said the delay would have little impact on the group's valuation as any exceptional gain from the Italian spin-off was not yet factored in due to uncertainties regarding the timing.
Hutchison shares did not appear to suffer unduly, closing up 10 cents, or 0.13 per cent, at $73.25 yesterday but the rumours of the delay have affected the counter in recent weeks as the stock is down 9.1 per cent from $80.60 at the beginning of last month.