AT&T’s Europe Threat Has Incumbents Weighing Ways to Bulk Up

Europe’s biggest phone companies have put the brakes on a flurry of asset sales as they brace for the likely entry by AT&T Inc. into the $313 billion market.

Deutsche Telekom AG and Orange SA of France, among those evaluating options, have slowed an effort to sell their 50-50 U.K. wireless venture known as EE, according to people with knowledge of the matter, who asked not to be identified discussing internal deliberations. To the south, Telefonica SA is using a planned exit by its partners in Telecom Italia SpA to seek greater influence in the former monopoly with businesses in Brazil and Argentina, people familiar with the matter said.