DailyTech - Report: AT&T Eyes European Expansion to Offset Slow Growth in the U.S.

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IT Report: AT&T Eyes European Expansion to Offset Slow Growth in the U.S.
Shane McGlaun (Blog) - January 17, 2013 9:30 AM

10 comment(s) - last by Strunf.. on Jan 18 at 8:45 AM

Analysts are dubious of the AT&T purchase rumors

Reports have surfaced that AT&T is looking to make an acquisition in Europe. AT&T could possibly be considering the purchase of Dutch carrier KPN or UK carrier Everything Everywhere in an effort to offset slowing growth within the U.S. Word of a potential AT&T buyout of Dutch provider KPN sent shares in the Dutch wireless carrier up 3.8% to close at €4.40, a five-week high.

AT&T and KPN have made no official comment on rumors of a potential purchase.

Analyst Jos Versteeg from private Dutch bank Theodoor Gilissen says that companies like AT&T could benefit from buying European rivals to create economies of scale. The analyst says that this move would be similar to the international expansion of British carrier Vodafone. However, a large portion of KPN is owned by a Mexican billionaire named Carlos Slim.

"Slim owns almost 30 percent. I don't see him selling now. He is a long-term investor. AT&T doesn't stand a chance buying KPN," Versteeg said."

Another analyst, Robin Bienenstock from Bernstein, noted that AT&T and Carlos Slim's company America Movili had attempted to work together in a bid for Telecom Italia in the past. She notes that she sees little chance of AT&T making a takeover in Europe.

Source: Reuters