Mobile phone giant Vodafone's board is reportedly putting together plans to swallow AT&T Wireless, the US' third biggest mobile player.
Vodafone bosses have until Friday to join the multi-billion dollar battle for AT&T Wireless.
They may offer $37bn (£20bn) in order to beat US rival Cingular's $30bn bid, according to UK press reports.
But Vodafone would have to ditch its 45% stake in US market leader Verizon Wireless if it buys AT&T Wireless.
The decision on whether to buy AT&T Wireless is being seen as a nail-biting one for the board, and especially for Vodafone's recently appointed chief executive Arun Sarin.
Cliff-hanger
"I don't think we'll decide till the last possible moment," the UK's Sunday Telegraph newspaper quoted a Vodafone director as saying.
"I would say the odds are 55% in favour of us going ahead," said the director.
Vodafone must weigh up the chance to increase its US presence by gaining ownership of a major player, against the risks of making a costly acquisition its shareholders seem doubtful about.
Vodafone's shares have fallen more than 6% in the last month since the prospect of a bid battle for AT&T Wireless emerged.
Risk of a shareholder row
Vodafone expanded aggressively under its last chief executive, Christopher Gent, who spearheaded its £100bn takeover of German firm Mannesmann, and shareholders are thought to want a period of consolidation.
Vodafone holds 45% of US market leader Verizon Wireless, whose technology is not compatible with Vodafone's other networks, while AT&T's is.
One problem Vodafone executives face is how to make sure they do not shed the Verizon stake, lose out to a rival for AT&T Wireless and end up without a significant US presence.
A takeover of AT&T Wireless by Cingular Wireless would mean a merger of the second and third biggest US mobile phone companies.
Other possible suitors include Japan's NTTDoCoMo, and US firm Nextel.
Vodafone is thought likely to seek to sell its Verizon Wireless stake back to Verizon Communications, the firm's parent company, for about $20bn, the Wall Street Journal reported.
Cingular is owned by SBC Communications and BellSouth.
From BBC News Online
