MARKET REPORT: Vodafone shares rise amid red hot rumours over AT&T cash bid
From the Daily Mail:
. . . the buzz in dealing rooms was that an even bigger takeover deal will soon set the market alight and launch the fabulous Footsie to a record above the magic 7,000 in the final quarter.
Vodafone put on 1.45p to 202.6p amid red hot speculation that advisers of AT&T are now working around the clock on a cash bid worth more than £3 a share for the UK mobile phone giant, which is currently capitalised at around £53billion.
After intense speculation in January, the second largest US mobile operator was forced to say that it didn’t plan to make a bid for Vodafone. That meant it could not offer to buy Vodafone or a stake of 30 per cent or more in the company for six months. AT&T has been allowed to make a move since late July and the weak performance of the Vodafone share price has persuaded the board to set the wheels in motion. AT&T has been looking in Europe for growth as its home market becomes more competitive. An acquisition of Vodafone would mean AT&T taking over Europe’s biggest wireless carrier and creating the world’s largest telecommunications operator by sales.
With more than 500million wireless subscribers worldwide, the combined company would be able to challenge Google and Apple when negotiating handset subsidies and wringing profit out of growing technologies such as mobile advertising. It would give AT&T access to markets including the UK and Germany, with Vodafone continuing to add wireless and broadband assets in Europe.