MILAN Vimpelcom (VIP.O) and CK Hutchison Holdings Ltd (0001.HK) can invoke a buy-sell option on the stakes they hold in the joint venture that merges their Italian units from three years after the deal's conclusion, a Vimpelcom presentation showed.
Earlier this month, the EU gave its greenlight to the 21.8 billion euro ($24.56 billion) deal combining Hutchison's 3 Italia with VimpelCom's Wind, putting them in a better position to compete with rivals Telecom Italia (TLIT.MI) and Vodafone Italia, part of Vodafone Group (VOD.L).
"After three years post-completion, each shareholder can invoke a buy-sell mechanism at any time," the slide said.
One source close to the matter said the option would be used in case the parties reach a deadlock in terms of decision making.
According to the document, the deal's completion is expected by the fourth quarter of this year. Vimpelcom and CK Hutchison will each own 50 percent of the HoldCo, which in turn combines the operations of Wind and 3 Italia.
Vimpelcom and CK Hutchison could not immediately be reached for comment.
(Reporting by Stefano Rebaudo; writing by Agnieszka Flak; editing by Francesca Landini)