Hutchison will not write down 3UK venture

June 28, 2003

Hutchison Whampoa, the Hong Kong-based telecom and port operator, on Thursday reiterated it has no intention to write down the value of its 65% stake in 3G mobilephone network operator Hutchison 3G (3UK) no matter what the finding of an independent valuation .

On Tuesday, the conglomerate group has asked an independent bank to value its 3UK operation in a move that could force the company to write down the values of its new UK venture because of depress sale figures.

The company also said it has made no decision on whether to purchase another shareholder in the 3G venture, Royal KPN's 15% stake in 3UK.

The comments, come amid a dispute between Hutchison and Royal KPN. Hutchison started court proceedings in London against KPN early this monthis over KPN refusal to loan US$250 million to the 3G venture earlier this year, while KPN has counter-sued in an attempt to force Hutchison to buy out its stake, which KPN has already written down.

The company paid £4.4 billion in 2000 for the UK 3G phone permit and invested around £3.5 billion to launch the service.

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Hutchison will not write down 3UK venture

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