Mobile phone giant Vodafone today confirmed it was weighing up a multi-billion pound bid for AT&T Wireless.
Amid speculation about a possible offer, Vodafone issued a short statement acknowledging for the first time that it was interested in AT&T, the third-biggest player in the US market.
It said it continued to monitor developments in the US market, while also "exploring whether a potential transaction with AT&T Wireless is in the interests of its shareholders".
A successful bid for the US firm would be Vodafone's biggest acquisition since it bought German rival Mannesmann for around Stg100 billion in 1999.
Reports have valued the AT&T Wireless business at around £22 billion sterling, with Vodafone facing competition from Cingular Wireless after the US company offered in the region of £16.3 billion.
In order to mount a successful bid, it is thought that Vodafone would need to sell its 45 per cent stake in US firm Verizon to satisfy regulators.