Regulator orders Hutchison to shed light on IPO risks

Italy's Consob is requiring Hutchison Whampoa to "clearly warn investors" about risks related to the planned IPO of its Italian mobile phone unit 3 Italia, a source, quoted by a Dow Jones report, said.


The report said the regulator approved 3 Italia's listing prospectus, but on condition that the company followed the disclosure requirements about risks related to its business plan and its finances.


The IPO was dependent on market conditions, "among other things," 3 Italia, quoted by Dow Jones, said.


The report also quoted a Consob spokesperson as saying that the regulator approved the prospectus on condition that it included investment risks.


Quoting a source, the report said the company had been asked to inform investors of risks connected with its industrial plan, "which is based on hypothetical assumptions."


"It's the first time that Consob asked a company to highlight a list of risks," the source, quoted by Dow Jones, said.