Vodafone Group saw its shares rise on Friday's trading after a report on US mobile operator AT&T contemplating on its potential takeover of the former had been released. Vodafone shares rose 2.9% at 231 pence at 1104GMT. The significant share price increase made Vodafone one of FTSE 100 index's biggest gainers in the blue-chip stock category.
AT&T's decreasing market share had reportedly prompted the second-largest mobile provider in the United States to consider merger options. AT&T Chief Executive Randall Stephenson earlier said that his company would be contemplating on a European mobile broadband investment should potential acquisitions would be available at the right deal. Sector bankers had also told Reuters previously that AT&T might be setting its sights on Britain's largest mobile carrier EE aside from Vodafone.
Vodafone had exited from its Verizon Wireless stake to joint venture partner Verizon Communications Inc in September. The stake sale was valued at a landmark USD130 billion. Espirito Santo analyst Robert Grindle disclosed that it was logical then for AT&T to contemplate on an acquisition of a European asset.
"What we don't have full clarity on is how ambitious AT&T is. (The report) is short on substance but long on plausibility," Grindle said.
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