AT&T Says No Plan To Make Offer For Vodafone

(RTTNews) - Following a request from the UK takeover panel, U.S. telecom giant AT&T Inc. (T) Monday confirmed that it does not intend to make an offer for Vodafone Plc. (VOD, VOD.L).

On November 1, 2013, Bloomberg reported, quoting people familiar with the situation, that AT&T was working on a potential takeover of Vodafone in the coming year and that the two companies have not entered formal discussions.

At that time, AT&T was said to be looking into which all assets of Vodafone it should retain after the deal, and who could be interested in buying what it divests.

AT&T's position in the U.S. market has become tougher with competitors cutting prices and offering more mobile data. Meanwhile, mobile broadband adoption in Europe has lagged behind the U.S. Keeping these in mind, AT&T was said to be formulating a strategy for Vodafone's operations in Europe.

Media also played up comments made by AT&T Chief Executive Randall Stephenson that there was a "huge opportunity" to invest in mobile broadband in Europe.

A merger between the two was expected to create the world's largest telecommunications operator by sales. The combination could have market capitalization of over $250 billion and large-scale operations globally with over 500 million wireless subscribers worldwide.

The speculation that lasted months regarding a potential transaction involving Vodafone and AT&T reflected in the movement on the stock price of Vodafone.

In September, Verizon Communications had agreed to buy Vodafone's 45 percent stake in their Verizon Wireless joint venture in a $130 billion cash and stock deal.

AT&T said today that it reserves the right to participate in an offer for Vodafone six months after today's announcement.

VOD.L closed down 0.6 percent at 232.55 pence on Friday, while T closed down 1.1 percent at $33.42.