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LONDON (Alliance News) - American telecoms company AT&T Inc. denied it would be making a bid for Vodafone Group PLC Monday, amid reports that Vodafone is seeking an major acquisition of its own, Spanish cable operator Grupo Corporativo ONO S.A.
In response to recent speculation, AT&T confirmed in a statement Monday that it does not intend to make an offer for Vodafone.
However, AT&T noted that it reserves the right to announce or participate in an offer or possible offer for Vodafone within six months of Monday's statement, under Rule 2.8 of the UK Takeover Code.
Meanwhile, Bloomberg reported Sunday that Vodafone is looking to acquire ONO as part of its expansion into high-speed Internet and television across Europe, according to people familiar with the talks.
ONO, a provider of fixed telecommunications in Spain, including broadband and pay TV, as well as mobile telecom services, is preparing for an initial public offering. ONO is the only fibre operator with national coverage in Spain that provides services to both homes and businesses.
In 2012, ONO generated revenues of EUR1.57 billion and a net profit of EUR52 million. The company has faced increasing price competition from rivals like Telefonica SA and Jazztel PLC.
However, a potential acquisition by Vodafone would disrupt ONO's planned initial public offering that reportedly could value the company at about EUR6.4 billion or USD8.7 billion, including debt.
Shares in Vodafone dropped 6.9% shortly after market open Monday morning, trading at 216.60 pence, making it the second biggest faller among FTSE 100 companies.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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