Hutchison Whampoa said it will spin out most of its cellular assets except, notably, most of its 3G networks, into a separate company and list that company on the Hong Kong stock exchange. Financial analysts characterized the move as ‘financial reengineering’ designed to produce one-time gain for Hutchison, and Hong Kong investors reacted by bailing out of a related company on the Hong Kong exchange in late trading on Monday, despite Li Ka-Shing’s attempt to personally prop up the shares.
Hutchison said it will contribute its fixed line, 2G and 3G cellular services in Hong Kong to the new venture, as well as its shares in cellular joint ventures in India, Thailand, Israel, Macau, Sri Lanka, Ghana and Paraguay. 3G operations in Europe and Australia will remain with the parent company.
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