AT&T Still Considering Takeover Bid for Vodafone
Published on: 1st Nov 2013
Note -- this news article is more than a year old.
Persistent rumours that AT&T is preparing a takeover bid for Vodafone wont go away, and have been resurrected again with another report that the US firm is working on a bid for next year.
While the companies haven't entered formal negotiations, AT&T is intensifying work on which Vodafone assets it would retain after a deal and who could buy others, Bloomberg News reports, citing unnamed people familiar with the matter.
Vodafone is expected to become a possible takeover target next year following the disposal of its $130 billion stake in Verizon Wireless, mainly as it is returning most of the money to shareholders rather than keeping it for its own takeover bids.
AT&T is likewise looking for overseas acquisitions to boost its growth, and European telecoms companies are relatively cheap at the moment due to the low profits and high competition in the market.
The sources told Bloomberg News that AT&T had approached Verizon Communications about a joint bid for Vodafone -- with the two owners then splitting up the assets, but Verizon declined.
Any bid by A&T would now have to wait until after Vodafone completes the sale of its Verizon Wireless stake, which is expected to take place early next year.
On the web: Bloomberg News