AT&T Plans 2014 Takeover of Vodafone

It had discussed a possible bid with Verizon earlier this year

   

A T and T ATT 9 300x199 AT&T Plans 2014 Takeover of VodafoneA massive transatlantic wireless merger may be in the works.

Sources tell Bloomberg that AT&T (T) is contemplating a takeover bid for Vodafone (VOD). The companies are not in formal talks over any bid, but AT&T is said to be developing plans to leverage Vodafone’s existing assets to accelerate the penetration of mobile broadband among European consumers. AT&T is also reportedly determining which Vodafone assets it will sell after the acquisition and which it would keep.

ATTLogo AT&T Plans 2014 Takeover of Vodafone
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Word of the potential deal comes in the wake of earlier rumors that AT&T and Verizon (VZ) had discussed the possibility of a joint bid for Vodafone earlier this year. Under that arrangement, AT&T would have acquired Vodafone’s operations in Europe, while Verizon would have retained Vodafone’s overseas businesses.

Verizon ultimately opted to pay Vodafone $130 billion to acquire its stake in their U.S. wireless joint venture, Verizon Wireless.

A merger between AT&T and Vodafone would required regulatory approval on both sides of the Atlantic and promises to be a highly complex transaction. If it does go ahead, the combined company would be the world’s biggest telecommunications company, in terms of revenue. It would have a market capitalization of more than $250 billion.

Shares of AT&T and Vodafone both slipped slightly in Friday afternoon trading.


Article printed from InvestorPlace Media, http://investorplace.com/2013/11/att-plans-2014-takeover-vodafone/.

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