Telecoms group Vodafone edges up by around 1 percent to add the mostpoints to Britain's benchmark FTSE 100 index, as analysts at Bernsteinraise their price target on Vodafone on the back of speculation of a possiblemerger with American peer AT&T.
Bernstein increases its price target on Vodafone shares to 250 pence from230 pence, while keeping a "market perform" rating on the stock.
Vodafone sold its stake in Verizon Wireless (VZW) to its joint venturepartner Verizon Communications Inc for $130 billion in September, leavingit with a pan-European business spanning Britain to Romania and operations inthe Middle East and Africa.
AT&T has been eyeing Europe since the beginning of the year and hasconsidered options including Vodafone and Britain's largest mobile carrier EE, ajoint venture of Orange and Deutsche Telekom, sectorbankers have previously told Reuters.
"We have increased our price target to 250 pence which factors in a 75percent chance of a deal with AT&T," Bernstein analysts write in a researchnote.
"Operationally & strategically, both AT&T and Vodafone are experiencing arough patch. The possible mega merger between the two that could be a welcomedistraction for both appears to have the same momentum as the VZW/Vodafone dealearlier this year," they add.
Reuters messaging rm://sudip.kargupta.thomsonreuters.com@reuters.net