US incumbent AT&T is continuing to consider European operators as it looks to expand overseas.
The Dallas-based telco agreed to acquire US prepaid operator Leap Wireless at the end of last week for US$1.19bn, but is looking at larger deals in Europe to…
US incumbent AT&T is continuing to consider European operators as it looks to expand overseas.
The Dallas-based telco agreed to acquire US prepaid operator Leap Wireless at the end of last week for US$1.19bn, but is looking at larger deals in Europe to take advantage of favourable takeover values and the opportunity to roll out LTE which it sees as a growth opportunity, according to a Bloomberg report.
AT&T is sizing up multinationals Telefonica and Vodafone, and UK operator EE, according to the article that cited people familiar with the company’s plans.
CEO Randall Stephenson has visited European telecoms commissioner Neelie Kroes to gain an understanding of the regulatory situation as she looks to unify regulation across the European Union and move towards a single market for telecoms.
In mid June, Telefonica shares briefly rose more than 3% following a report that AT&T had approached the Spanish government with regards to a takeover of the incumbent player. The government reportedly rebuffed AT&T.
Meanwhile a potential acquisition of Vodafone is complicated by the UK group’s 45% stake in AT&T’s rival in the US, Verizon Wireless.
Larger deals for a pan-European operator would also come with significant regulatory hurdles, which may mean it moves for smaller carriers to gain a foothold in the market, according to people cited by Bloomberg
AT&T is said to be interested in EE, which is looking at a potential IPO. Timotheus Hoettges, CFO of one of EE’s parents Deutsche Telekom, has said previously that a float would take place in Q4 or later.
A further option could be Telecom Italia, suggested by Bernstein Research analyst Robin Bienenstock in a note today – the struggling Italian incumbent could be in need of an outside investor.
