AT&T Said to Build Europe Case Without Saying ‘Vodafone’

AT&T executives huddled with small groups of investors in Barcelona to discuss their willingness to own cable assets and stretch their balance sheet for big investments in mature economies like those in Europe, said people with knowledge of the matter.

AT&T, which is said to remain interested in acquiring Vodafone, started each meeting by saying that it wouldn’t be discussing Vodafone, due to UK takeover rules preventing it from bidding for five more months, the people said, asking not to be identified because the discussions were private. AT&T Chief Financial Officer John Stephens said his company understands the cable business and knows how to integrate it with wireless phone services, said these people. He also said AT&T is willing to pursue large strategic deals, even if it means increasing leverage to afford a transaction and maintain the dividend, the people said. The name of Vodafone -- Europe’s largest telecommunications firm with a market value of 65 billion pounds ($108 billion) -- wasn’t mentioned again after the initial disclosure in the meetings at the Hotel Arts Barcelona during the Mobile World Congress, the people said.