AT&T Wireless Services Inc.’s popularity as a dance partner has apparently increased as published reports claim a handful of wireless carriers are now targeting the country’s largest publicly traded operator as a possible merger partner, which in the end could set off a bidding war for AT&T Wireless, which has a current market capitalization of approximately $22 billion.
Following reports earlier this week that AT&T Wireless and Cingular Wireless L.L.C. had rekindled possible merger talks, unnamed sources told the Wall Street Journal that Japanese telecommunications giant and current minority-interest partner NTT DoCoMo Inc. and Nextel Communications Inc. have approached AT&T Wireless about a possible acquisition or merger.
The report added that Vodafone Group plc, which currently owns 45 percent of Verizon Wireless, is expected to also explore a possible merger deal with AT&T Wireless. Vodafone has publicly said it is happy with its current stake in CDMA carrier Verizon Wireless, though many industry sources claim the complete ownership of a GSM-based carrier like AT&T Wireless would more closely match with Vodafone’s international plans.
Adding further fuel to the fire was a report from the Seattle Post-Intelligencer that said AT&T Wireless has hired Merrill Lynch & Co. as an advisor, signaling the carrier’s intent to merge or sell its operations.
While none of the carriers involved are commenting on the situation, investors are working themselves into a frenzy as AT&T Wireless’ stock was up as much as 25 percent this week, setting a new 52-week high of $10.17 per share, though the stock was trading down just more than 3 percent mid-day Thursday at $9.65 per share.
