Analysts say T-Mobile wants a partner with U.S. customers and spectrum

Analysts say T-Mobile wants a partner with U.S. customers and spectrum
According to analysts toiling on Wall Street, T-Mobile has a set of criteria being used to evaluate potential merger partners. Jefferies analysts Mike McCormack, Scott Goldman and Tudor Mustata met with the carrier's investor-relations crew on Monday, and wrote clients to tell them that T-Mobile feels as though it has a number of M&A options available.

The analysts say that T-Mobile is seeking a partner that owns U.S. based spectrum, has U.S. based customers, and is offering a good price for the mobile operator. That covers many of the reasons why the company rejected the offer from French telecom Iliad. The latter, known as the T-Mobile of France, offered $15 billion for 56.6% of T-Mobile's stock, German telecommunications firm Deutsche Telekom owns 67% of the U.S. mobile operator. T-Mobile and Deutsche Telekom also concluded that Iliad's $33 per share offer was too low.

While Iliad still has an interest in purchasing T-Mobile, Dish Network is the name being bandied about lately as a possible acquirer of the mobile operator. The latest rumor has Dish making a bid for T-Mobile after the AWS-3 spectrum auction in November. Meanwhile, the carrier's CEO calls the attention flattering. John Legere, who has turned T-Mobile into the most innovative of the four major U.S. operators, said last week that his firm is playing from a position of strength.


The Jefferies analysts add that T-Mobile is currently happy with the current pricing environment even though recent moves by Sprint undercut it by $20 for an unlimited everything plan. T-Mobile is also not interested in offering a shared data deal like the rest of the industry, as it believes that its current plans are the most consumer friendly.

While T-Mobile might be interested in a partner with U.S. spectrum and customers, it needs to be mindful of the regulators in the states. The FCC and FTC were both ready to block any Sprint bid for T-Mobile, which is why Sprint turned away from making a bid for its rival.

source: FierceWireless

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4 Comments

1. SemperFiV12

Posts: 949; Member since: Nov 09, 2010

Conglomerates are going to get fatter and fatter... When is the US government going to condemn M&A of already huge companies. Smaller, competitive companies should be rewarded and allowed to stay in the game!

2. JMartin22

Posts: 2326; Member since: Apr 30, 2013

The government is still composed of federal workers. The same people that draft law, deny existing laws or put in amendments to preexisting legislation, are those subjected to lobbyist by these big corporations. They literally buy their way through government regulations at our expense.

3. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

Resources simply. USA was founded by the rich, simple as that. It is the rich that gave jobs, and the big companies that expanded the land. However it must be for the good of the people. Thing is, do you think Verizon like coverage comes from small business? Or from big corps with cash to spend, be in the red for years because of it knowing it will pay out later. Most small business can't go one year in the red and Christmas season makes our breaks them.

4. JMartin22

Posts: 2326; Member since: Apr 30, 2013

You're right, it's for "the good of people"http://youtu.be/uyuIiG4c4Go

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