AT&T officially announced that it does not have any plans of making an offer for Vodafone Group Plc. This announcement was made in a statement to the U.K. Authorities, which prohibits the second-largest wireless carrier in the U.S. to make a takeover bid in the next six months.
AT&T is a communications holding company, which provides local and long-distance phone service, wireless and data communications, Internet access and messaging, IP-based and satellite television, security services. The companys Executive Officers were believed to lay the groundwork internally for this years potential acquisition of Vodafone Group. A person familiar with the matter reported for Bloomberg that the Chief Executive Officer of AT&T – Mr. Randall Stephenson had an informal meeting with the European Union digital commissioner Neelie Kroes at the World Economic Forum in order to discus potential European acquisitions.
The same person with knowledge of the matter revealed that Mr. Stephenson took advantage of the World economic Forum last week to discuss potential European acquisitions with the top telecommunications official in the region. They also said that Stephenson and Kroes met in Switzerland and discussed the possibility of an AT&T bid not only for Vodafone, but also for another carrier in Europe.
AT&T made a statement today, which was cited by Bloomberg. The company said: “At the request of the U.K. Takeover panel, AT&T confirms that it does not intend to make an offer for Vodafone.”
Ben Padovan, who is one of the spokesmen of Vodafone Group Plc, refused to make any comments.
Over the last few years, the home market of AT&T becomes more and more compatible. That is one of the main reasons why the company becomes more focused on Europe looking for growth options. T-Mobile US Inc. and Sprint Corp., which are the fourth- and third- largest players, are cutting their prices and offer additional mobile data while trying to shift AT&T and Verizon Communications Inc. from their leading position on the market.
According to CNN Money, the current share price of AT&T Inc. is 1.12% down, and its one-year return rate is 4.95% down. The 21 analysts offering 12-month price forecasts for AT&T Inc. have a median target of 38.00, with a high estimate of 42.00 and a low estimate of 34.00. The median estimate represents a +13.70% increase from the last price of 33.42.
According to CNN Money, the current share price of Vodafone Group Plc is 2.69% down, and its one-year return rate is 3.23% down. The 22 analysts offering 12-month price forecasts for Vodafone Group Plc have a median target of 37.96, with a high estimate of 45.33 and a low estimate of 21.16. The median estimate represents a -0.20% decrease from the last price of 38.04.
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