AT&T not to bid for Vodafone for six months

Allaying market speculations over a possible takeover, US telecommunications giant AT&T Inc said yesterday that it does not plan to submit a bid for British multinational mobile operator Vodafone Group Plc.

In a brief statement filed with the UK's panel for takeover and mergers, the US company said, ''AT&T notes the recent speculation regarding a potential transaction involving Vodafone Group Plc and recent movement in the share price of Vodafone.''

''At the request of the UK takeover panel, AT&T confirms that it does not intend to make an offer for Vodafone,'' it said.

According to the UK takeover rules, now AT&T cannot make a bid to acquire Vodafone or make an offer to buy 30 per cent or more stake in the company for the next six months, barring certain special conditions, such as Vodafone invitng a proposal to sell itself or a third party entering  the fray.

Further to the news, shares in Vodafone slumped 7.2 per cent, the most in five years before closing 4.4 per cent down at 223.45 pence yesterday in London. The stock has risen 53 per cent last year.

Dallas-based AT&T is a leading provider of telecommunication services in the US and internationally. With a powerful array of network resources that includes the nation's fastest and most reliable 4G LTE network, AT&T offers wireless, Wi-Fi, high speed Internet, voice and cloud-based services.

Media reports in November indicated AT&T's possible acquisition of the British mobile giant. According to some estimates, Vodafone is worth around $130 billion, after the company divests its US operations.

Earlier in September, Vodafone agreed to sell its 45-per cent stake in US wireless carrier Verizon Wireless to partner Verizon Communications for $130 billion, in one of the biggest deals in corporate history. (See: Verizon buys Vodafone's US joint venture for $130 bn)

According to some analysts, the US company might have lost interest altogether or may be interested in postponing the bid to have more time to see Vodafone's financial forecasts for the next year and evaluate EU's regulatory policies.

Some analysts believe that the deal could still happen and rising competition from home rivals including Verizon Communications, Sprint Corp and T-Mobile is prompting AT&T to look for lucrative opportunities in the European market.

London-headquartered Vodafone is the world's third-largest mobile operator after China Mobile and India's Airtel. It has around 453 million customers as of June 2013. The company has operations in 30 countries and partner with networks in over 50 more.

Meanwhile, media reports yesterday suggested Vodafone's potential acquisition of Spanish cable operator Grupo Corporativo ONO as part of its plan to expand into high-speed internet and television services across Europe. (See: Vodafone in talks to acquire Spain's cable operator Grupo Corporativo ONO)

Last year Vodafone acquired German internet and cable operator Kabel Deutschland Holding AG in a $10.4-billion deal, aiming to extend its reach beyond mobile in Europe's largest economy.

AT&T's acquisition of Vodafone would create the world's largest mobile operator with over 560 million customers worldwide, and provide AT&T immediate opportunity to enter the UK and German markets.

Vodafone's European competitors include Spanish operator Telefonica SA and Germany's Deutsche Telekom AG among others.