Vodafone has turnaround potential and AT&T may be willing to pay healthy premium for co., as it now faces credible competition in U.S., Bernstein says in note. • Says Vodafone unlikely to accept offer below 7x 2014E Ebitda; valuing co. at 291p/shr (28% premium), or 276p/shr when factoring in discount on value of AT&T shrs in a deal • Says investment, reorganization required for VOD turnaround shouldn’t be underestimated • Bernstein raises PT on VOD by 9% to 250p; says PT is weighted 75% toward a deal, 25% toward co.’s standalone valuation o Rates VOD market perform • NOTE: AT&T said to be laying groundwork internally for a potential takeover of Vodafone • NOTE: VOD to report 2Q results on Nov. 12