Bernstein Considers Implications of AT&T for Telefonica Blocked Deal Rumor

In a report published Monday, a Bernstein analyst suggested the rumor the Spanish government blocked a massive bid for Telefonica

from AT&T

indicates AT&T might be interested in emerging market exposure. AT&T is currently seeking ways to spend its money in Europe as the company struggles domestically, according to the Bernstein analyst. Similarly to the move by Spanish regulators, Bernstein believes both the Italian and Portuguese governments would likely reject AT&T from bidding on Telecom Italia

and Portugal Telecom

, respectively. Shares of Telefonica are up 3.5 percent at last check; elsewhere in the telco space, shares of Telecom Italia are up 3.6 percent, and shares of Portugal Telecom are up 2.7 percent.