AT&T, the second-largest US mobile-phone company, said it doesn't plan to make an offer for Vodafone Group .

“At the request of the UK takeover panel, AT&T confirms that it does not intend to make an offer for Vodafone,” Dallas- based AT&T said in a statement today.

AT&Texecutives were understood to be laying the groundwork internally for a potential acquisition of Vodafone this year.

AT&T is looking to Europe for growth as its home market becomes more competitive. T-Mobile US and Sprint, the fourth- and third- largest players, are cutting prices and offering additional mobile data in an effort to break the dominance of AT&T and Verizon Communications.

AT&T chief executive officer Randall Stephenson took advantage of the World Economic Forum last week to discuss potential European acquisitions with the region's top telecommunications official, according to a person with knowledge of the matter. Stephenson met informally in Davos, Switzerland, with European Union digital commissioner Neelie Kroes.

Bloomberg