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The money network:

The money network:

Why crowdfunding threatens traditional bank lending

March 2006

Hutchison Whampoa: Mixed signals from 3G float

There was a message of serious intent in the choice of syndicate for Hong Kong-based Hutchison Whampoa’s proposed flotation of its Italian 3G business. The message from the market was equally clear. Despite the best efforts of Goldman Sachs, HSBC, JPMorgan, Merrill Lynch and Morgan Stanley to get the deal away, the US$7 billion price offered by investors was simply too unpalatable for an investment that has cost Hutchison between US$8 billion and US$9 billion. The IPO was pulled.


A face-saving private placement hastily arranged by Goldman Sachs, which raised a token sum at the US$9 billion valuation that Hutchison claims its Italian business is worth, fooled no one. The terms of the deal extracted from investors were sufficiently draconian to make that evident.

The immediate ramifications of the failed deal are...


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