AT&T Eyes Stake in Malaysia's TM Int'l: Report

AT&T, the biggest U.S. phone company, is keen to buy an unspecified stake in the mobile arm of state-controlled phone firm Telekom Malaysia, a Malaysian newspaper reported on Wednesday.

Telekom Malaysia is spinning off its mobile business into a separately listed firm, TM International, which will include its domestic Celcom unit and operations in nine other countries, including India, Indonesia, Bangladesh and Sri Lanka.

AT&T is among the frontrunners to form a parthership with TM International as the U.S. firm has a presence in Vietnam -- a market that Telekom is keen to penetrate, the paper said citing unnamed sources.

Telekom was not immediately available for comment.

It had earlier dismissed as speculative a November report by Britain's Sunday Times that Vodafone was a frontrunner to buy a 25 percent stake in TM International.