MILAN: Telecom Italia said Thursday it had set up a special committee to examine a merger with 3 Italia, a unit of Hong Kong conglomerate Hutchison Whampoa.

Hutchison Whampoa has indicated it is interested in becoming the leading shareholder in Telecom Italia, the former national phone company said following a board meeting.

The company suffered a net loss of 1.6 billion euros ($2 bn) in 2012.