The company has been exploring new ways to strengthen its mobile phone unit and bring in new resources, after it posted a domestic decline of 5.8% in revenue year on year.
The deal, set to be discussed on April 11 at a Telecom Italia board meeting, could see a merger between two of Italy’s main four operators, and give the company’s a combined market share of 45.4%.
Bloomberg reported that the Italian operator could be open to exchanging shares for Hutchison Whampoa’s wireless unit, which has 9.5 million customers, as a cash deal is unlikely.
Another stipulation to a possible merger could also see Telecom Italia offering Hutchinson Whampoa a 5% stake in Telco, Telecom Italia’s majority shareholder, for its Italian unit.
Both Hong Kong-based Hutchison Whampoa and Telecom Italia representatives declined to comment.
