Hutchison Whampoa's Italian mobile unit, 3 Italia, has gained listing approval but is still awaiting final clearance from the securities market regulator before it begins its long-awaited Euro2 billion ($18.6 billion) initial public offering. While the Italian stock exchange's approval nudged the offering closer to a planned March date, analysts said its targeted Euro9 billion to Euro12 billion valuation looked increasingly difficult to achieve, given recent investment bank downgrades for key European telecommunications counters. Borsa Italia, the Milan exchange, on Friday said it had approved 3 Italia's application and it would set a time for its debut later. The 91 per cent held 3G mobile unit of Hutchison Whampoa has until February 14 to get approval from the Italian securities watchdog, Commissione Nazionale per la Societa e la Borsa (Consob). 'I expect Consob's approval would come through over the next few days - but their requirements are quite strict,' said Riccardo Monti, director and head of telecommunications and media practices at management consultancy firm Value Partners. Hutchison's Italian unit missed its offering target last year, citing a need to complete the purchase of mobile television firm Channel 7. It wants to position itself as a media firm, not just a mobile operator. This year, more challenges appeared as bankers and management reportedly wrangled over the unit's valuation. Its bottom of the range has fallen to Euro8 billion from Euro9 billion. Hutchison had hoped to raise Euro12 billion to Euro15 billion. Mr Monti said: 'Euro8 billion is a compromise as local operators such as Vodafone are no longer willing to stand back amid 3 Italia's aggressive price discount which could be 50 per cent off their pricing when it first came to the market almost three years ago.' As 3 Italia plans to sell 25 per cent of its share capital to investors, Euro8 billion would mean a Euro2 billion offering. Mr Monti said there would be market interest in 3 Italia, the world's first pure listed 3G play and Italy's biggest flotation this year but there was still concern over when it would generate positive cash flow. 3 Italia has said it already had operating earnings before interest, tax, depreciation and amortisation since last year. Analysts said recent profit warnings by France Telecom, Cable & Wireless and Vodafone were further challenges for the offering. France Telecom has lost 15 per cent of its stock value in the past month. Joint global co-ordinators of the deal include Goldman Sachs, HSBC, JP Morgan, Merrill Lynch, Morgan Stanley, Italian banks Banca IMI and Banca Caboto.