AT&T loss fuels sale speculation

US telecom giant AT&T has reported an $83m (€65.34) loss for the last quarter of 2003.

The third largest US phone operator said technical competition and intense competition were to blame.

This will increase speculation that the company will put itself up for sale.

Earlier, reports in the UK indicated that Vodafone may decide to bid for AT&T or merge with a rival to protect its own interests in the States.

John Zeglis, chairman and chief executive said today: "We've had some great quarters to report at AT&T Wireless, but the fourth quarter of 2003 was not one of them."

Analysts have sensed that Zeglis is doing little to dampen speculation of a possible sale.

AT&T has hired investment bank Merrill Lynch and Wall St law firm Wachtell, Lipton, Rosen & Katz, to advise it on the process.

The company's share price has risen 35% since the start of the year.