Hutchison Whampoa Fails to Reassure, but Pleases Vodafone Investors

TOKYO -- Hutchison Whampoa (HUWHY:OTC BB) did not necessarily reassure its own shareholders regarding its European third-generation, or 3G, mobile-phone strategy when it released earnings earlier today, but it did boost the spirits of Vodafone Group (VOD Quote) investors.

This took short-term pressure off the U.K.-based mobile-phone operator, the largest in the world and a part owner of Verizon Wireless, which today announced it would look to raise $5 billion in an initial public offering. Vodafone was up nearly 3% to 2.62 in late afternoon London trading Thursday, while its ADRs were up a nearly similar amount by midday in New York.

Yet, market observers caution that Hutchison's lockup on its Vodafone shares expires in September, adding the opportunistic conglomerate is not likely to be a long-term shareholder. The company, chaired by billionaire Li Ka-shing, is known for cashing in on savvy telecom plays. ...