AT&T Clears Way for Vodafone Growth by Acquisition

By Trey Thoelcke Published Jan 27, 9:00AM EST

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Shares of Vodafone Group PLC (NASDAQ: VOD) tumbled in premarket trading Monday after AT&T Inc. (NYSE: T) ended speculation that it would acquire the British telecom. AT&T said in a statement: “At the request of the UK Takeover Panel, AT&T confirms that it does not intend to make an offer for Vodafone.” The decision means that AT&T may not bid for the British telecom for six months.

Vodafone has been a speculated takeover target since it announced last year that it would sell its 45% stake in Verizon Wireless to partner Verizon Communications Inc. (NYSE: VZ) for $130 billion. However, the Newbury, U.K.-based company seems to be putting itself on a path to growth by acquisition. It recently acquired German cable TV operator Kabel Deutschland as part of its push into new markets.

Vodafone is said to be pursuing Spanish cable operator Grupo Corporativo ONO. But ONO has been preparing for an initial public offering, valued at as much as 6.4 billion euros ($8.8 billion). If there is a deal with Vodafone instead, it could be announced in the next few weeks, said people familiar with the matter.

British Sky Broadcasting reportedly is another possible target for Vodafone. However, there are also rumors that British Sky’s parent company, Twenty-First Century Fox Inc. (NASDAQ: FOX) may seek to fold in its operations in an effort to unite its European operations. Furthermore, Twenty-First Century Fox is a majority shareholder of British Sky and likely would block any deal in which it became a minority partner.

Vodafone and Verizon will hold shareholder meetings this week to approve the $130 billion deal, which is expected to be passed with an overwhelming majority and close in the coming weeks.

Vodafone shares were down 5% to $36.17 in premarket trading Monday. The 52-week range is $24.42 to $39.44.

About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.