Technology

Shares in Vodafone slump by 6% as A&T rules out offer

Ahead of Vodafone’s disposal of its US business to Verizon, AT&T, the second-largest US mobile-phone company, has confirmed that it will not be making an offer for the UK telecoms group

A logo sits on a sign above the entrance of a Vodafone store, operated by Vodafone Group Plc in London. Photograph: Jason Alden/Bloomberg

Mon Jan 27 2014 - 08:37

AT&T, the second-largest US mobile-phone company, said it doesn't plan to make an offer for Vodafone Group .

“At the request of the UK takeover panel, AT&T confirms that it does not intend to make an offer for Vodafone,” Dallas- based AT&T said in a statement today.

AT&Texecutives were understood to be laying the groundwork internally for a potential acquisition of Vodafone this year.

AT&T is looking to Europe for growth as its home market becomes more competitive. T-Mobile US and 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.

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AT&T chief executive officer Randall Stephenson took advantage of the World Economic Forum last week to discuss potential European acquisitions with the region's top telecommunications official, according to a person with knowledge of the matter. Stephenson met informally in Davos, Switzerland, with European Union digital commissioner Neelie Kroes.

Bloomberg

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