Three, Vodafone merger talks 'progressive and positive'

The chief financial officer of Hutchison's Three UK said on Thursday talks with Vodafone about combining their networks in Britain were "progressive and positive", although he declined to comment on the outcome.

In an interview with Reuters after the mobile operator reported results, Darren Pukis said talks "are moving in the right direction". He added: "I think there is a desire from both parties."

Vodafone announced in October that it was in talks with its smaller rival to combine the country's third and fourth biggest networks, with an ownership split of 51% Vodafone and 49% Three's owner, Hong Kong's CK Hutchison.

"A merger of this size is complex, so there's a lot of moving parts and we just need to continue working through the list," Purkis said.

Complexities include the fact that Vodafone and Three are in separate network-sharing agreements, as well as untangling Vodafone UK's ties with its parent group.

Sources have told Reuters that talks are in the final stages.