LONDON, Nov 1 (Reuters) - Shares in Vodafone Group rose on Friday after a media report that U.S. mobile operatorAT&T was exploring strategies for a potential takeover ofthe British telecoms firm.
AT&T Chief Executive Randall Stephenson has said there is a"huge opportunity" to invest in mobile broadband in Europe andhe would buy wireless assets if they were available at the rightprice.
AT&T is the second-largest mobile provider in the UnitedStates after Verizon Wireless. But it is not adding newcustomers in its home market as fast as Verizon, and it is alsoceding market share to much smaller rival T-Mobile US.
Vodafone sold its stake in Verizon Wireless to its jointventure partner Verizon Communications Inc for $130billion in September, leaving it with a pan-European businessspanning Britain to Romania and operations in the Middle Eastand Africa.
AT&T has been eyeing Europe since the beginning of the yearand has considered options including Vodafone and Britain'slargest mobile carrier EE, a joint venture of Orange and Deutsche Telekom, sector bankers have previouslytold Reuters.
A Bloomberg report on Thursday, citing people familiar withthe situation, said AT&T was examining how it could divideVodafone up after a deal, keeping some assets and disposing ofothers. The companies have not entered formal negotiations, thereport said.
Shares in Vodafone were up 2.9 percent to 231 pence at 1104GMT, the biggest gainers on the FTSE 100 index ofblue-chip stocks.
Espirito Santo analyst Robert Grindle said it was logicalfor AT&T to consider its options regarding Vodafone, followingits U.S. exit.
"What we don't have full clarity on is how ambitious AT&Tis," he said. "(The report) is short on substance but long onplausibility."
Vodafone and AT&T declined to comment.