Vodafone tipped to bid for AT&T

Mobile phone giant Vodafone today remained tightlipped over a report that it is preparing to launch a $30bn (€24.2bn) bid for 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 US firm would be Vodafone’s biggest acquisition since it bought German rival Mannesmann for about £100bn (€146.2bn) in 1999, according to The Observer.

However some of Sarin’s major shareholders could reportedly block the bid, amid fears an aggressive move in the US would hold back earnings growth.

City sources told the newspaper they believed Sarin would fight hard for a takeover, which is 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, Sarin would reportedly need to sell Vodafone’s 45% stake in US firm Verizon to satisfy regulators.

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

Newbury-based Vodafone said last week that it had seen its strongest quarterly customer growth in three years.

The company said it has 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 UK customer during the quarter.