Several interesting signs of looming trouble for Hutch have appeared in the last couple of days. First, Nomura Securities says it thinks Hutch will exit the 3G business by 2006. “Our Hutchison Whampoa estimates include an assumption that the company walks away from its 3G ventures by the end of the full year of 2006,” said an analyst, who questioned how the company can achieve a positive ROI and still value its 3G business at negative HK$63B. And on Friday NTT DoCoMo finally confirmed publicly that it may sell its 20% stake in 3 (UK). “Hutchison Whampoa can do it alone. It is time to consider whether we should keep our investment in Hutchison 3G or not. So, [pulling out] is an option,” DoCoMo CEO Keiji Tachikawa told the Financial Times.
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