New deal within 6 months possible if situation changes dramatically

Following speculation AT&T would make a bid for Vodafone somewhere north of $60 billion, the second-largest U.S. carrier has filed a statement saying it won't pursue the action any further. The official statement comes as a result of U.K. laws — in this case the U.K. Takeover Code — which require companies to release written statements as to their intentions of bid for a U.K. company.

Now our U.K. law prowess isn't of the highest degree, but it seems as though AT&T never actually had much of a serious intention to make a bid for Vodafone to begin with. And in light of the negative effects of the speculation on Vodafone's stock price — down about 3 percent over the weekend — AT&T was required to make a statement reflecting its true intentions.

Citing note 2 of Rule 2.8 of the UK Takeover Code, AT&T does have the right to make a bid for Vodafone in the next six months provided the circumstances fall into line with the notes on that rule. Loosely put, note 2 of Rule 2.8 gives AT&T the opportunity to make another bid for Vodafone if the deal structure changes dramatically (i.e. a reverse takeover), another company makes a serious offer to buy AT&T itself, or the U.K. authorities decide that there has been a dramatic change in circumstances surrounding an AT&T-Vodafone buyout.

That's all big and complicated with lots of legal jargon, but the end result looks to be AT&T putting a bid for Vodafone on the back burner for now. Unless something dramatically changes, we won't see the carrier making such a splash in Europe — or at least the U.K. — any time soon.

Source: AT&T; U.K. Takeover Panel

There are 20 comments

RaiderWill says:

In the end.. It's for the best.

NoNexus says:

That was 24 hours of ..... nothing

Bring on SprinT Mobile

Joel E says:

Oceans of red tape and legalities smh. Gives me a headache just reading about it.

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NoNexus says:

I hear you but it was a crappy deal from go for Europe. It would be like Verizon buying Verizon here in the US, no one wins.

That is a very narrow view and maybe uneducated on my part, but I did not get to look into it at all since it was a 24 hour deal.

mwara244 says:

Almost sounds like a ploy for some top execs at Vodaphone to boost their stocks briefly to sell off and get out of the company after Verizon's pay day to buy back the other half. If I was the FEC enlivenment in Britain or Europe I'd be looking for anyone dumping a bunch of their stock after it went up after the buyout announcement.

Jay Holm says:

Fabulous! ! !

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rovex says:

What a relief, we dont any of that US carrier BS over here thank you.

verpeiler089 says:

Germany already infiltrated the US with t-mobile ;-)

zack w says:

With crappy service and overly cocky CEOs ;)

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DJCBS says:

+1 hear hear

Gekko says:

well there goes my dream of a true global carrier. for now. it's still coming.

Hiberny says:

They would never have used their new power to leverage any of the things you mentioned in the other thread. It would just be another opportunity for them to nickel and dime the customers. They want to be able to collect twice as much international roaming, not make roaming cheaper.

Now, if you become the CEO of AT&T and bring those changes to fruition yourself I'll support the merger gladly. Otherwise, I can't be optimistic.

keith2k1 says:

Do you really globally travel that much?

Asbjörn says:

This was certainly a very well calculated move. We, the general public can only speculate but the enlightened few accomplished exactly what they wanted to. For the rest of us, time will tell what that was all about.

peterfares says:

UK dodged a bullet there!

DWR_31 says:

It's nice to see that the UK isn't full of blind people. Now only if we can get not-so-smart Americans using the intelligence that God gave them.

Posted from my "KNOX-FREE" 4.3 Sprint GS3 Maxx...!!!
(ZeroLemon 7000mah battery)

verpeiler089 says:

God? Seriously? :-!

keith2k1 says:

UK lives to fight another day...don't know how long that will last.

DJCBS says:

Well thank God. I wasn't that keen on changing carriers but a AT&T owned Vodafone would definitely make me change.

drei10 says:

currently it seems that phone has got bigger! So called TAB has taken the place of mobile. We are getting back to the early time!

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