Continental drift

17 January 2013 By Quentin Webb

The U.S. telco is reportedly eyeing deals in Europe. With valuations at their current low, running numbers makes sense. But cross-border tie-ups offer limited cost savings, and operators are only cheap because markets are tough. AT&T would need to spot some serious hidden value.

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AT&T is considering buying a counterpart in Europe, the Wall Street Journal reported on Jan. 17, citing people familiar with the U.S. carrier’s thinking.
Some top AT&T executives see a “unique opening” to buy an operator in a big European market such as Britain, Germany or the Netherlands, the WSJ said. The biggest Dutch carrier, KPN, and Everything Everywhere, the British mobile venture jointly owned by France Telecom and Deutsche Telekom, are “on AT&T’s radar”, the newspaper added.
Shares in KPN stood 5 percent higher at 4.466 euros by 1411 GMT.

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