AT&T rules out bid for Vodafone

US mobile group AT&T has ruled out a bid for Britain’s Vodafone for now, with banking sources saying a US spying scandal and a surge in European telecom shares may have disrupted a deal that many think could still happen.

AT&T, the US’s second- largest mobile operator, sparked speculation it could be interested in a potentially £70bn-plus (€84bn) deal for Vodafone after its chief executive said in October there was a “huge opportunity” in Europe to invest in mobile broadband.

However, after weekend news reports it had met European regulators to sound them out about a deal, AT&T was asked by Britain’s takeover watchdog to clarify its position and said in a statement yesterday it did not intend to make a bid.