backtop


Print 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



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

Might be a good move
By woody1 on 1/17/2013 12:25:01 PM , Rating: 2
This might be a good move for AT&T. European telecom stock prices are beaten down now and probably a good value. Also, the EU is cooking up some kind of policy change that will allow all the EU telcos to pool money for infrastructure investment. AT has a long history of working within a regulatory framework in the US and could probably navigate those waters in Europe as well as anybody. They're probably running all kinds of analyses to see how they can cash in on the upcoming EU policy changes before the market figures it out.




"If they're going to pirate somebody, we want it to be us rather than somebody else." -- Microsoft Business Group President Jeff Raikes











botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki