• silicon.com
• Technology
• Mobile

By Ron Coates, 5 February 2004 15:15

NEWS Vodafone is looming over the coming auction for US mobile operator AT&T Wireless to make sure its rivals pay a high price, according to US reports.

But the UK company's shareholders are worried that a bid might succeed and have lopped 10 per cent off the price of its shares this year.

Today, the influential Wall Street Journal speculated that Vodafone could go through the motion of preparing a bid to make sure that any potential US rivals pay top price for the Ma Bell off-shoot.

Vodafone said that it is sticking by its comment of last week that it was "watching developments" and added that it wouldn't comment on every piece of speculation that appeared in the world press.

The purchase would put a dent in even Vodafone's balance sheet. A US joint venture has already made an informal approach to AT&T Wireless offering a deal worth around $30bn.

And, if Vodafone were to win any deal for the US operator, it would have to sell the majority of its 45 per cent stake in the US market leader, Verizon.

The advantages of a successful bid by the world's largest mobile operator would be establishing the Vodafone name in the world's biggest market and controlling its own operations there.