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Hutch sues KPN over 3 funding (or lack of)
The Fund Boy 3
Hutchison Whampoa is sueing Royal Dutch KPN over its alleged partner's decision to stop funding 3.
KPN is a shareholder in Hutchison 3G, the European greenfield 3G mobile network operator mostly owned by Hutchison Wampoa, the Hong Kong conglomerate. Last year the Dutch telco said it would not pump any more money into the 3 network. The company has written off its investment in 3 UK and is hawking its stake for sale.
KPN's bluff was well and truly cash-called in March, when Hutchison 3G pressed for an injection of $1.6 billion for 3 UK. This was designed to see the network through to projected profitability.
NTT DoCoMo, the other shareholder in Hutchison 3G, coughed up, but KPN held fast. At the time it said it believed that it was under no obligation to push any more money Hutch 3G's way. Hutchison Whampoa thinks differently: it accuses KPN of breach of contract. ®
Biting the hand that feeds IT
