Telecom giant AT&T Inc. (T
) is looking to make a big move after watching its main competitor, Verizon Wireless (VZ), turn in a big earnings win.
The strategy may actually involve a firm that was, until recently, heavily involved with Verizon. Vodafone Group Plc (VOD) held a major stake in Verizon, which the latter only recently purchased back to operate on its own.
With AT&T looking to expand its operations, joining forces with a firm like Vodafone can help push the boundaries on its reach and customer base. Though the companies have yet to enter formal negotiations, sources state that executives at AT&T are discussing a bid to takeover Vodafone.
It is also rumored that T is looking at the U.K. firm, EE, but that seems less likely than the Vodafone deal. The company is expected to announce a bid sometime next year and the move is heavily expected by buy-side investors. The rumors alone had Vodafone’s stock trading higher on the day.
T shares were up 1 cent at Thursday’s close. The stock is up approximately 7.5% on the year.
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