American telecom service provider AT&T on Monday said it is not aiming to bid for the London mobile operator Vodafone plc.
As per the regulation, AT&T cannot bid to buy Vodafone for six months. AT&T was responding to U.K. regulators on an enquiry on Vodafone about its intentions.
Earlier, there were wide speculations that AT&T is looking at Vodafone for a possible acquisition. The speculation increased after Vodafone exited from the American telecom market by selling its stake in Verizon Wireless for $130 billion.
Meanwhile, Bloomberg report says that the statement means AT&T can’t offer to buy Vodafone or a stake of 30 percent or more in the global telecom operator for the next six months, according to U.K. takeover rules. AT&T made the announcement today at the request of the U.K. takeover panel.
While AT&T is now ruling out an immediate offer for Vodafone, with a market value of $177 billion before a sale of its U.S. venture is completed, it could make a bid later on, said Simon Weeden, an analyst at Citigroup Inc. in London.
AT&T is looking to Europe for growth as its home market becomes more competitive. T-Mobile US Sprint, the fourth- and third-largest players, are cutting prices and offering additional mobile data in an effort to break the dominance of AT&T and Verizon Communications.
An acquisition would let AT&T expand in markets such as the U.K. India, Africa and Germany, with Vodafone continuing to add wireless and broadband assets in Europe. To grow in Spain, Vodafone is seeking to acquire Grupo Corporativo ONO SA even as the cable operator prepares for an initial public offering.
