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| Version 1 | Version 2 |
|---|---|
| Hutchison to buy Orange Austria as it seeks expansion | Hutchison to buy Orange Austria as it seeks expansion |
| (40 minutes later) | |
| Hong Kong's Hutchison 3G has agreed to buy Orange Austria in a bid to expand it presence and boost its market share in the country. | Hong Kong's Hutchison 3G has agreed to buy Orange Austria in a bid to expand it presence and boost its market share in the country. |
| Hutchison will pay 1.3bn euros ($1.7bn; £1bn) for a complete buyout of the firm. | Hutchison will pay 1.3bn euros ($1.7bn; £1bn) for a complete buyout of the firm. |
| The deal is expected to make Hutchison, which already operates in Austria under the name '3', the third-largest mobile phone operator the country. | The deal is expected to make Hutchison, which already operates in Austria under the name '3', the third-largest mobile phone operator the country. |
| Hutchison 3G is unit of billionaire Li Ka-shing's Hutchison Whampoa. | Hutchison 3G is unit of billionaire Li Ka-shing's Hutchison Whampoa. |
| The deal still requires to be approved by regulators. | |
| 'Critical mass numbers' | 'Critical mass numbers' |
| Hutchison's '3' brand has been lagging behind other competitors such as A1 and T-Mobile Austria which have the bulk of the market share. | Hutchison's '3' brand has been lagging behind other competitors such as A1 and T-Mobile Austria which have the bulk of the market share. |
| Analysts said that for Hutchison to remain viable and profitable in the country, it had to increase its consumer base. | Analysts said that for Hutchison to remain viable and profitable in the country, it had to increase its consumer base. |
| "In the telecom business there is a real co-relation between market share and profitability," Bertrand Bidaud of Gartner told the BBC. | "In the telecom business there is a real co-relation between market share and profitability," Bertrand Bidaud of Gartner told the BBC. |
| Mr Bidaud explained that given the high competition in the Austrian market, the best way for Hutchison to increase its share was to look for consolidation. | Mr Bidaud explained that given the high competition in the Austrian market, the best way for Hutchison to increase its share was to look for consolidation. |
| "To get market share you can fight against the competition or buy one of them out - that is what they have done" he said. | "To get market share you can fight against the competition or buy one of them out - that is what they have done" he said. |
| "It is a significant step to reach critical mass numbers for Hutchison." | "It is a significant step to reach critical mass numbers for Hutchison." |
| The deals is expected to give Hutchison access to 2.8 million consumers and take its market share to almost 22%. | |
| Further sale | |
| However, Hutchison will sell some some assets of Orange Austria to Telekom Austria. | |
| These may include base station sites, and certain intellectual property rights. | |
| It is also expected to offload Orange Austria's affiliate mobile phone operator Yesss!. | |
| Analysts said Hutchison was looking sell these in a bid to ensure that it there was no objection to the deal from the competition watchdog. |