Vodafone frusterated with US growth.

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Vodafone underlined its frustration with its lack of control in the key, high-growth U.S. market with a controversial, and ultimately failed, bid for U.S. rival AT&T Wireless in February.


But the bid attempt, tipped to have risen to about $38 billion, triggered a steep fall in the group's shares on fears it was a serial acquirer at almost any price in order to clinch control of a U.S. business and bring its brand into the world's most powerful economy.


It also prompted the Chief Executive to launch a quest over the summer to restore investor faith in his acquisitions and shareholder returns strategy -- while apologizing for erecting a wall of silence during the auction.


Industry sources familiar with talks have said Verizon has eyed both Sprint and Sprint's current bid target, Nextel, in the past. But they have said the chance of any takeover, which would shrink the number of U.S. wireless competitors to four, looked slim.


However, market experts are hoping that if Verizon has changed its mind and clinches Sprint, its British-based partner will be able to resolve two niggling issues -- ensuring a U.S. dividend stream is reinstated and securing a deal to buy out Verizon's 23 percent stake in Vodafone Italy.


Verizon Wireless, one of Vodafone's fastest-growing assets, pays about 70 percent of its net adjusted income in annual dividends to its two parents, worth about $1.0 billion to Vodafone. But the deal expires in March 2005.

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