NEW YORK-Vodafone Group plc’s plans to bid on AT&T Wireless Services Inc. could be on hold as published reports indicate the worldwide wireless provider is considering a much larger proposal to acquire current Verizon Wireless partner Verizon Communications Inc.
The deal, reported in today’s Wall Street Journal and dubbed the “Big Bang theory” by some industry analysts, would likely be a hostile takeover bid and could cost Vodafone as much as $150 billion. The report indicates Vodafone would be able to recoup much of the investment by spinning off Verizon’s wireline business.
Vodafone acknowledged yesterday that it was continuing to monitor development in the U.S. market following rumors that the company was set to bid as much as $40 billion on AWS, which would necessitate Vodafone divesting its 45 percent interest in Verizon Wireless.
Credit Suisse First Boston attached a low probability to Vodafone making a bid for Verizon Communications, but noted that Cingular Wireless L.L.C., which has reportedly placed a $30 billion bid for rival AWS, is continuing to talk with Deutsche Telekom AG about a possible merger with T-Mobile USA Inc. should it fail to acquire AWS.
