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Vodafone May Be a Target for AT&T, SoftBank or AMX, Citi Says 2013-11-19 16:23:07.331 GMT
By Sam Chambers Nov. 19 (Bloomberg) -- AT&T’s potential interest in Vodafone would be based on expectation that the European economic cycle, telco regulatory cycle and network cycle are all at or near the bottom, Citi says. * Says in event of a deal, benefits to AT&T may be constrained by tax hurdles arising from repatriation of cash from different European countries * NOTE: Nov. 6, AT&T may offer healthy premium for VOD, Bernstein said * SoftBank is seeking scale and VOD’s large 2.6GHz spectrum holding could let it cut costs on devices and equipment, Citi says * After its failed attempt to buy KPN outright, America Movil may be interested in VOD’s Indian, eastern European assets, Citi says * Says AMX may consider partnership with AT&T in a potential takeover, buying some of VOD’s developing-mkt assets and making financing more manageable for AT&T * Without a bid, downside to VOD is limited and co.’s topline growth is likely to improve dramatically over next 12 months: Citi * Reiterates buy rating on shrs and increases its PT by 11% to 260p, a 12% premium to current share price * NOTE: Citi is one of VOD’s house brokers
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--Editor: Jim Silver
To contact the reporter on this story: Sam Chambers in London at +44-20-7673-2021 or schambers7@bloomberg.net
To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net