By Foo Yun Chee
BRUSSELS - CK Hutchison Holdings (HK:0001) will seek to convince EU antitrust regulators of the merits of its proposed buy of Telefonica's (MC:TEF) British mobile unit at a hearing on March 4, three people familiar with the matter said on Monday.
The move comes after the European Commission earlier this month warned that the 10.3-billion-pound deal to create Britain's biggest mobile operator may result in higher bills for consumers.
The combination of Hutchison's Three Mobile and Telefonica's O2 will cut the number of network operators from four to three in Britain, a level which regulators dislike unless companies offer hefty concessions to allay their concerns.
Li Ka-Shing's Hutchison, however, is keen to reinforce its telecoms operations in the UK, the smallest network operator in the country. Asia's richest man last year revamped his business to boost the value of his companies and attract more investors.
Hutchison will present its case in front of an audience of senior Commission officials, national competition agencies and rivals at the closed hearing.
The company will offer concessions shortly after the hearing, the people said.
Commission spokesman Ricardo Cardoso declined to comment on the hearing.
Following a call from the British telecoms regulator to the EU to block the deal, Hutchison earlier this month said it was ready to freeze prices for five years and also invest 5 billion pounds in its businesses in Britain.
With a tougher EU antitrust chief in office, the company will have to offer substantially more concessions including divesting network capacity and frequencies to a new rival.