AT&T Wireless Services Inc.’s board of directors has reportedly authorized the wireless carrier to study potential acquisition offers from a number of competitors thought to be looking to take over the nation’s third-largest wireless carrier, including Cingular Wireless L.L.C., Nextel Communications Inc., NTT DoCoMo Inc. and Vodafone Group plc.
The board, which is meeting in Florida ahead of the company’s fourth-quarter and year-end 2003 earnings release scheduled for next Tuesday, was reportedly considering whether to make its plans to entertain offers public this week or wait until next week’s event. The Wall Street Journal reported that AT&T Wireless’ board has officially retained the law firm of Wachtel Lipton and Merrill Lynch & Co. as advisors.
Published reports indicate Cingular has the inside track for a possible acquisition and has reportedly already made an $11 per share or $30 billion offer for its smaller rival. AT&T Wireless’ stock was trading up nearly 4 percent early Wednesday at $10.79 per share and has increased more than 30 percent since the beginning of the year when the latest acquisition rumors surfaced.
A deal between Cingular and AT&T Wireless would create the nation’s largest wireless carrier with approximately 45 million subscribers, or roughly one-third of the wireless customers in the United States.
