Hutchison reviewing EU objections to O2 merger-source

(Adds background)

By Paul Sandle

LONDON, Feb 5 (Reuters) - CK Hutchison Holdings Ltd has received the EU's list of objections to its takeover of Telefonica (Amsterdam: TA6.AS - news) 's O2, which will create Britain's biggest mobile operator and cut the number of networks to three, a person familiar with the situation said.

European Union antitrust regulators launched a full investigation last October into Hutchison (HKSE: 0013-OL.HK - news) 's 10.3 billion pound ($16 billion) bid for the Spanish company's network in the UK, concerned that the deal may push up prices.

"Hutchison has received a copy of the statement of objections on Thursday and is now reviewing it," the source said on Friday.

The Hong Kong-based company, which already owns Three, Britain's smallest network, showed it was willing to address any competition concerns on Tuesday by saying it would freeze prices for five years if the deal got the go-ahead.

It (Other OTC: ITGL - news) also said it would invest 5 billion pounds in its businesses in Britain.

The verdict from EU anti-trust regulators will show if a tougher line on more concentrated ownership has held since they scuppered a deal in Denmark in September.

European telecoms companies have argued that consolidation will enable them to invest in faster networks, but regulators have been concerned that it pushes up prices.

The British telecoms regulator urged Brussels to block the Three-O2 tie-up last month, saying there was a risk that consumers could face higher mobile bills.

Ofcom Chief Executive Sharon White said it could also upset existing network-sharing agreement in Britain.

Three currently has a network sharing agreement with BT's EE network, while Vodafone has a deal with o2. (Editing by Adrian Croft and Alexander Smith)