Boston, MA 01/28/2014 (wallstreetpr) – Vodafone Group Plc (ADR) (NASDAQ:VOD) appeared to be an attractive target for AT&T Inc (NYSE:T) as it attempts to expand into the so-called fertile lands of Europe. However, in a surprising move, AT&T seems to have put the takeover on the backburner.
The Takeover:
AT&T has been in the news recently as it is trying to expand in to the European market. Such an expansion is seen as a necessity as its competitors have upped the ante and reduced rates and data limits in a bid to wrestle the position in the American markets. As such, the market is at a stagnation point with a very slow growth in new connections. A takeover of Vodafone Group Plc (ADR) (NASDAQ:VOD) would have given it access to the British and the German markets. It has already taken over some companies so that it already has a presence in European lands. It plans to build a pan-European presence and become the first telecommunications company to do so. The benefits from this move are many.
However, AT&T has now put these rumors to rest by stating before the British officials that it was not considering such an offer. According to British takeover laws, the company can bid for a 3% or more stake in Vodafone Group Plc (ADR) (NASDAQ:VOD) only after a period of six months or more after this statement.
Vodafone’s other moves:
Vodafone is going ahead with its planned stake sale in Verizon Communications Inc. (NYSE:VZ). It expects to mop up at least $130 billion through this sale and plans to dispose off its entire 45% holding in the company. However, Vodafone also plans to buyback $84 billion of its stock through the proceeds. Even after the sale, Vodafone still has a base of 400 million subscribers across the world.
Could it turn to acquisitions to fuel its inorganic growth?
