AT&T Stalking Europe for Mergers

AT&T is considering buying a counterpart in Europe, a bet that it can best escape constraints on growth at home by getting into a new wireless market where it can upgrade technology and roll out more lucrative pricing strategies, people familiar with the carrier's thinking said.

The company is currently studying targets, and a deal—if one happens–could come before the end of the year, those people said. Such a deal would carry a lot of risk. Wireless companies have pursued international strategies before with mixed results. There would be few opportunities to make the deep cost cuts that are typically needed to justify big acquisitions because the networks wouldn't overlap. AT&T also would be stepping into a much more competitive market than it has in the U.S. and would face a new set of regulators.