AT&T Inc (NYSE:T) To Expand In Brazil
AT&T Inc (NYSE:T) has made it pretty clear that it wants to expand its reach and move into international waters via its acquisitions in Europe. Media information says that the company is exploring various possibilities and deals with companies like Telefonica, Vodafone and Verizon Wireless are all on its radar.
The deals that did not come through
The Telefonica deal came under flak from Spanish authorities while the Vodafone deal seems like it is standing on stronger ground. AT&T Inc (NYSE:T) has shown distinct interest in either a part or 100% of Vodafone’s assets. This bid is on the anvil as Vodafone’s stake in Verizon Wireless has still not gone through and regulatory approval may be easier once that has been cleared.
In any case, it doesn’t seem like there is a possibility of a major buy in Europe as there is a great deal of political opposition at the moment and things might just trend the Telefonica way. The fact of the matter is that the European economy has been pretty much down in the dumps for the last few years and the revenues in most sectors are not at all attractive.
On the other hand, Telecom Italia‘s Brazilian unit, Tim Participacoes might just be a better option. Very recently, Telefonica reached a deal to up its stake in Telecom Italia and in the future it might take control of the company. Telefonica is the owner of Vivo which is Brazil’s largest mobile operator. There is a distinct possibility that AT&T Inc (NYSE:T) might be a string bidder for it and so, it might just make an international entry into Brazil.
In Wednesday’s trading, AT&T Inc (NYSE:T) rose by 1.93%. The opening price of the shares was $33.23, which climbed to an intraday high of $34.10 and dipped to a close of $33.75.