AT&T (T) Fixing to Make Major Deal in Europe as Telecoms Pressured
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Price: $16.81 +1.88%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 6.5%
EPS Growth %: -8.3%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 6.5%
EPS Growth %: -8.3%
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European telecoms are seeing some upside activity as AT&T (NYSE: T) begins searching for a meaty acquisition to boost its presence overseas.
According to reports out Thursday, AT&T is looking for a company it can acquire to bolster is wireless reach as well as upgrade networks to draw in customers. The WSJ says a deal might come before the end of the year, if one happens.
Some markets being mulled by AT&T execs include the Netherlands, the U.K., and Germany.
It's not clear whether there would be any antitrust issues akin to those surrounding the proposed $39 billion takeover of T-Mobile USA from Deutsche Telekom back in 2010. It is likely that any proposed deal will come under close scrutiny of European regulators.
With the recent downturn of the European market and even Germany said to have entered a recession, prices on telecoms might be at attractive valuations. Names like BT Group (NYSE: BT), France Telecom (NYSE: FTE), Telefonica S.A. (NYSE: TEF), Royal KPN (OTCBB: KKPNY), Deutsche Telekom (OTCBB: DTEGY), and others might be in play should AT&T move forward.
Shares of AT&T are indicated lower Thursday, and have closed lower six of the last sessions.
According to reports out Thursday, AT&T is looking for a company it can acquire to bolster is wireless reach as well as upgrade networks to draw in customers. The WSJ says a deal might come before the end of the year, if one happens.
Some markets being mulled by AT&T execs include the Netherlands, the U.K., and Germany.
It's not clear whether there would be any antitrust issues akin to those surrounding the proposed $39 billion takeover of T-Mobile USA from Deutsche Telekom back in 2010. It is likely that any proposed deal will come under close scrutiny of European regulators.
With the recent downturn of the European market and even Germany said to have entered a recession, prices on telecoms might be at attractive valuations. Names like BT Group (NYSE: BT), France Telecom (NYSE: FTE), Telefonica S.A. (NYSE: TEF), Royal KPN (OTCBB: KKPNY), Deutsche Telekom (OTCBB: DTEGY), and others might be in play should AT&T move forward.
Shares of AT&T are indicated lower Thursday, and have closed lower six of the last sessions.
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