Vodafone quiet over E24bn takeover report

MOBILE phone giant Vodafone has remained tightlipped over a report that it is preparing to launch a $30 billion (E24 billion) bid for American mobile giant AT&T Wireless.

Chief executive Arun Sarin is understood to have ordered financial advisers to draw up a draft document to help persuade investors that the acquisition makes commercial sense.

A successful bid for the firm would be Vodafone’s biggest acquisition since it bought German rival Mannesmann for about E143bn in 1999, according to reports.

However, some of Mr Sarin’s major shareholders could reportedly block the bid, amid fears an aggressive move in the US would hold back earnings’ growth. City sources believed Mr Sarin would fight hard for a takeover, set to receive initial bids on February 13. US operator Cingular and Japanese giant NTT DoCoMo are expected to be among the bidders.

In order to mount a successful bid for AT&T Wireless, Mr Sarin would reportedly need to sell Vodafone’s 45% stake in American communications firm Verizon to satisfy regulators.

A spokeswoman for Vodafone said the company would not comment on speculation.

Vodafone said last week that it had seen its strongest quarterly customer growth in three years. The company said it added more than 4.3 million customers in the three months to December 31, taking its total customer base to more than 130.4 million.

It also said its Vodafone live! picture-based service racked up its millionth British customer during the quarter.

The mobile giant has interests throughout the world, with operations in over a dozen European countries as well as in America, Japan, Australia, New Zealand and Egypt. It has more than 1.8 million customers in Ireland and added 68,000 new customers here in the last quarter of 2003. The company said last week that it generated average revenue per Irish user of E582 during 2003. Average revenue from prepaid customers was E361, while post-pay customers racked up calls worth an average of E1,116 during the year.