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AT&T Inc. is observing the possibility for a potential takeover of Vodafone Group Plc next year, exploring a complex deal with Europe’s largest mobile carrier, people familiar with the situation said to Bloomberg.

The deal isnt confirmed yet, and most likely a transaction wouldnt materialize until 2014 – thats when Vodafone will be free of its $130 billion stake in Verizon Wireless. According to Bloomberg AT&T is also considering UK carrier EE (Everything Everywhere Limited) as an alternative option.

“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, AT&T can’t afford to take its eye off the U.S. market where competition is heating up, he said.

AT&T approached Verizon Communications this year about a transaction in which the US telecom company was interested in buying Vodafones European operations, with Verizon taking over their wireless joint-venture and America Movil SAB taking much of the rest. Verizon rejected that approach as too complex and likely to slow its own $130 billion (96 billion euros) purchase of Vodafones 45% stake in Verizon Wireless, the sources added.

If a possible takeover happens, Vodafone and AT&T would offer a globe-spanning telecom service with a market capitalization exceeding $250 billion. With more than 500 million wireless subscribers worldwide, the company would be able to challenge smartphone manufacturers when negotiating subsidies and revising deals such as mobile advertising.

Bloomberg reports that one strategy discussed by AT&T would involve spinning off most of Vodafone’s emerging-market assets into a new entity that could be acquired by a single buyer, such as Carlos Slim’s America Movil or China Mobile Ltd. Such a plan was the core of AT&T’s approach to Verizon earlier this year, two of the people said. AT&T owns a 9% stake in America Movil and has two seats on its board.

Vodafone added 3.6% to 232.5 pence at the close in London on Friday. AT&T added less than 1% to $36.24 as of 4 p.m. EDT. The CNN Money 24 analysts offering 12-month price forecasts for AT&T Inc have a median target of 38.00, with a high estimate of 42.00 and a low estimate of 35.00. The median estimate represents a 4.86% increase from the last price of 36.24. The current consensus among polled investment analysts is to hold stock in AT&T Inc.

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