WASHINGTON, Jan. 29 (UPI) -- A potential European buyer for AT&T Wireless has dropped out of the hunt as Cingular formalized its intent to buy the No. 3 U.S. cell phone carrier.
The boards of BellSouth Corp. and SBC Communications Inc., which own Cingular Wireless, have authorized it to make a formal bid for AT&T Wireless, the Wall Street Journal reported Thursday.
The move, two weeks before the deadline AT&T Wireless has set for bids, is the firmest indication yet of Cingular's interest in acquiring the company.
Informally, Cingular offered $11 a share in cash, valuing AT&T Wireless at $30 billion.
But Cingular may need to up its ante.
Since December, anticipation of the sale has driven up AT&T Wireless share by 50 percent. AT&T Wireless's shareholders are likely to demand a premium to the current stock price.
Meanwhile, Germany's Deutsche Telekom said it was "not in an acquisition mode."
In mid-morning trading Thursday, the company's shares were trading at $11.02 on the New York Stock Exchange.
