HONG KONG (XFN-ASIA) - Hutchison Whampoa would sell mobile operator 3 Italia if it receives a sufficiently attractive offer, JPMorgan said in a report.
According to JP Morgan, Italian newspaper la Repubblica has reported that the Italian telco operator Wind may offer up to 4 bln eur for Hutchison's 3 Italia.
The paper also reported that Hutchison wants at least 5 bln euro, but a Hutchison spokesperson denied that 3 Italia is for sale.
"We currently value 3 Italia at 3.2 bln eur. If 3 Italia is valued at 4 bln euro, this adds 2.27 hkd/share to our Hutchison NAV estimate, which is currently 123 hkd/share," JP Morgan said, adding that Hutchison is currently trading at a 38 pct NAV discount.
The brokerage views Hutchison as an attractive large-cap, but doesn't see many catalysts, given its exposure to European retail, telcos and ports, which are likely being impacted by slowing economic growth.
Hutchison's China property interests and its port at Yantian on the eastern side of Shenzhen are also facing more difficult operating conditions, it added.
JP Morgan prefers Cheung Kong as it sees more catalysts, particularly on the property side.
It maintained its "neutral" call on Hutchison with a target price of 87 hkd.
At 3.30 pm, Hutchison was up 2.80 hkd or 3.81 pct at 80.4.
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