Report: Vodafone Bids $35 Billion For ATT Wireless

Report: Vodafone Bids $35 Billion For ATT Wireless

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Story Published: Feb 16, 2004 at 2:52 AM PDT

Story Updated: Aug 31, 2006 at 1:24 AM PDT

By KOMO Staff & News Services

LONDON - Vodafone Group PLC has bid about $35 billion for AT&T Wireless Services Inc., leaving the contest for the nation's third-largest mobile phone carrier a bidding war with Cingular Wireless, The Wall Street Journal reported on its Web site.

Because both offers are similar, AT&T Wireless is seeking a second round of offers from the companies, the newspaper reported Sunday, citing people close to the situation.

Nextel Communications Inc. and NTT DoCoMo Inc. of Japan didn't enter a bid, the newspaper's sources said. People close to the situation said a choice of Vodafone or Cingular could come soon, though AT&T Wireless may take as long as two weeks to decide.

A spokesman for British giant Vodafone declined to comment Sunday on the reports. A week ago, Vodafone confirmed that it was pondering a bid for AT&T Wireless, based in Redmond. An AT&T Wireless spokesman, David Caouette, also declined to comment.

A Vodafone deal would require the British cell phone giant to sell its 45 percent stake in Verizon Wireless, the biggest mobile phone company in the United States.

Verizon Communications chief executive Ivan Seidenberg has said his company would be pleased to assume full ownership of Verizon Wireless if Vodafone decided to pursue AT&T Wireless.

Although Verizon Wireless is the nation's No. 1 cellular company with 37.5 million subscribers, Vodafone has been discontent with its lack of control in a market as significant as the United States.

Atlanta-based Cingular is a joint venture between SBC Communications Inc. and BellSouth Corp.

AT&T Wireless' share price has risen steadily in recent weeks on news that it was putting itself on the auction block. The carrier has more than 22 million subscribers, including a sizable base of corporate clients who tend to use more services and spend more money.

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