LONDON-Vodafone Group plc reportedly is set to bid as much as $35 billion for AT&T Wireless Services Inc. in an attempt to gain control of the third-largest wireless operator in the United States, according to a report in the Wall Street Journal citing people close to the situation.
While Vodafone has only publicly stated it was looking at its options in regards to an AWS bid, the Wall Street Journal report indicates Vodafone’s chief executive, Arun Sarin, intends to present a proposal to the company’s board of directors, which has previously approved a bid in principle. Companies interested in acquiring AWS, which put itself up for sale last month, have until Friday afternoon to place a bid.
Published reports also indicated Vodafone has been in tense talks with current U.S. partner Verizon Communications Inc. over the international wireless giant’s 45-percent interest in Verizon Wireless that it would have to relinquish should it acquire AWS. Vodafone has put options in its current agreement with Verizon Wireless that would force Verizon Communications to acquire its 45-percent interest for approximately $20 billion.
Cingular Wireless L.L.C. reportedly has made a $30 billion all-cash offer for domestic rival AWS, while analysts expect current AWS minority stakeholder NTT DoCoMo Inc. could also be interested in placing a bid. Deutsche Telekom AG, which currently controls T-Mobile USA Inc. through its T-Mobile International subsidiary, said earlier this week it is not interested in expanding its U.S. footprint and instead is focused on maximizing the profitability of its current operations.
