AT&T Said to Explore Vodafone Deal as Soon as Next Year

A merger, which would create the world’s largest telecommunications operator by sales, wouldn’t be AT&T’s first attempt at combining the companies. AT&T approached Verizon Communications Inc. (VZ) this year about a transaction in which AT&T would buy Vodafone’s European operations, with Verizon taking over their wireless joint-venture and America Movil SAB taking much of the rest, two of the people said. Verizon rejected that approach as too complex and likely to slow its own $130 billion purchase of Vodafone’s 45 percent stake in Verizon Wireless, they said.

“Buying Vodafone seems like an easy decision for AT&T given the value of their stock and the still-low interest rates,” said Walt Piecyk, an analyst with BTIG LLC in New York. Still, while Europe might offer some expansion opportunities. VZ.