London, Feb 02: Vodafone CEO Arun Sarin is believed to have told advisors to draft documents to try to persuade investors that a bid for AT&T Wireless is a good idea, The Observer has reported.
Speculation is mounting that Vodafone, the world’s largest mobile phone firm, is tempted to trade its minority position in No 1 US cellphone provider Verizon for control of AT&T Wireless, the No 3 mobile phone group.
AT&T Wireless, which has a market capitalisation of around USD 30.36 billion, put itself up for sale on January 22 as it reported poor results and high customer turnover. On Tuesday, the firm set a mid-February deadline for suitors.
Sources said Vodafone had been sounding out the market about financing for possible acquisitions. Sources said talks between the parties were more focused than usual.
However, some investors and analysts are growing increasingly concerned that a USD 30 billion-plus bid auction for AT&T Wireless risks upsetting Vodafone’s current US strategy.
Bureau Report