Feeling Blu: 3G auction restarts amid uncertainty

NEWS The sale of the five Italian third generation licences was halted on Friday afternoon at the request of Blu following the company's E2.32bn (£1.35bn) bid. Blu, whose principal shareholder is BT, failed to give a reason for the request. However, Blu's other shareholders Benetton, BNL, Caltagirone, Distacom, Italgas and Mediaset were in dispute in the days leading up to the bidding process over their financial involvement in the auction. Benetton and Caltagirone asked for the process to continue but the remaining shareholders wanted to redistribute the financial burden among themselves before continuing to bid. Shareholders are calling on BT to raise its stake in the consortium from 21 per cent to 50 per cent. However BT has in the past declared it would not put forward more than 30 per cent of the bid. Fears have been raised this morning that a failure to resolve these difference may result in the company withdrawing altogether. At the close of bidding on Friday, total bids amounted to E12.16bn (£7.3bn).