Vodafone Cable Interest Complicates Possibility of AT&T Deal

The possibility that Britain's Vodafone Group will acquire cable assets in Europe is complicating a possible deal with AT&T, people familiar with the matter said. AT&T Chief Executive Randall Stephenson nodded to the concerns in a private meeting with investors at the company's Dallas headquarters, the people said. Stephenson said buying cable companies might be the right stand-alone strategy for Vodafone CEO Vittorio Colao, but it isn't what the AT&T chief would do because the wireless market is a better bet, the people said. The U.S. carrier hasn't lost interest in a deal, the people said. The development highlights the complex signaling that goes on when companies have to navigate possible deals that become public while continuing to manage their stand-alone businesses.