April 2 (Reuters) - Verizon Communications Inc saidit does not "currently have any intention" to merge with or buyits partner Vodafone Group Plc, either alone or inconjunction with others, in response to press reports.
However, the telephone company said on Tuesday that it wouldstill be a willing buyer of Vodafone's 45 percent share of theirVerizon Wireless U.S. venture, in line with public statementsVerizon has made many times over the years.
Verizon's statement contradicts a report from the FinancialTimes Alphaville blog on Tuesday that cited unnamed sourcessaying Verizon and its biggest U.S. rival, AT&T Inc, hadbeen working together on a bid for Vodafone in which Verizonwould take Vodafone's U.S. assets and AT&T would take the rest.
Bernstein analyst Robin Bienenstock said in a research notethat any deal "other than a merger is unwelcome by Vodafone'smanagement" as management believes that the U.S. market is moreattractive than Europe for wireless.
While analysts said they saw benefits from a Verizonpurchase of the rest of its wireless venture, they were muchmore skeptical of the idea that AT&T would want Vodafone'soverseas assets in a deal they perceived as as highly risky.
Verizon has said for many years that it would like to buythe rest of Verizon Wireless, the biggest U.S. mobile service,but the companies have never been able to reach an agreement.
Speculation about a potential deal between Verizon andVodafone has ramped up since January as Vodafone explored whatto do with its U.S. asset, which makes up about 75 percent ofits value.
Speculation about a potential deal between Verizon andVodafone has ramped up since January as Vodafone explored whatto do with the U.S. business, considered by many investors itsmost valuable asset.
The speculation has stemmed partly from a valuation gapbetween Verizon and Vodafone, seen by some analysts as making adeal this year more likely.
Verizon's unwillingness to go ahead with a merger mayscupper its chances of buying out Vodafone's Verizon Wirelessstake, at least for now, according to some analysts.
Verizon shares closed 0.6 percent higher at $49.50 onTuesday, while Vodafone shares closed up 2.9 percent at 192pence in London.