Vodafone has withdrawn from an auction battle for AT&T Wireless.
The move clears the way for US mobile phone company Cingular to buy its smaller rival AT&T Wireless, the third-largest US mobile phone group, with a $15-per-share bid valuing the company at $45 billion.
"On 17 February 2004, Vodafone withdrew from the auction when it concluded that it was no longer in its shareholders' best interests to continue discussions," the company said in a statement.
"Vodafone remains committed to its existing position in the US market with its successful partnership in Verizon Wireless," it added.
Vodafone owns a 45-per cent stake in Verizon Wireless, the largest US mobile phone operator in the United States.
Earlier, a source close to the auction told Reuters that Vodafone's bid rival Cingular, the second-largest US mobile phone company, had won the auction with a $15-per-share, all cash bid that values AT&T Wireless at about $40.7 billion.