Iliad abandons its quest to buy T-Mobile

Iliad abandons its quest to buy T-Mobile
French telecommunications firm Iliad has decided to end its quest to buy T-Mobile. Iliad has often been compared to T-Mobile in France, and its bid to buy 56.6% of the U.S. carrier for $15 billion was a complete surprise. At the time, T-Mobile was expecting a bid from Sprint. Iliad's bid, coming at the end of July, forced Sprint to abandon its pursuit of T-Mobile, and led to the removal of long time CEO Dan Hesse.

Iliad was seeking partners to make a stronger bid, and earlier this month it put together a consortium consisting of itself, two private equity firms, and some banks. This group raised its bid to $36 a share for 67% of T-Mobile's shares. The earlier bid for 56.6% had been priced at $32 a share. But Deutsche Telekom (which owns 67% of T-Mobile) and T-Mobile's board "refused to entertain" the new offer.

Iliad said that had it purchased the stake in T-Mobile, it could have saved the U.S. carrier $2 billion a year in costs, creating significant value for stockholders of both firms. With Sprint and Iliad out of the picture, Dish Network could still have an interest in T-Mobile. Dish CEO Charles Ergen has long desired to offer wireless service to Dish customers. Earlier this year, Ergen said that if Sprint lost its interest in T-Mobile, Dish would step in.

Recently, T-Mobile CEO John Legere said during an interview, that the carrier continues to receive plenty of interest from companies looking to purchase the carrier. Any deal for T-Mobile will have to go through Deutsche Telekom because of the latter's majority stake in the U.S. company.

source: Iliad via WPCentral

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7 Comments

1. 1ceTr0n

Posts: 549; Member since: May 20, 2012

Please let the door your ass on the way out. Hard.

2. sdeetz

Posts: 5; Member since: Aug 26, 2014

Why would you use the iPhone 6 instead of the 6+? The 6+ is the one with OIS like the Note 4. Try comparing true competitors next time.

3. Goldeneye

Posts: 419; Member since: Jan 22, 2011

Size maybe? Not everyone needs/wants a phablet.

5. dorianb

Posts: 617; Member since: Oct 24, 2012

Not sure what this has to do with the article :shrug:

6. cncrim

Posts: 1571; Member since: Aug 15, 2011

Off topic.

4. hitechredneck

Posts: 103; Member since: Nov 21, 2011

Yeah right. LOL. So who's offering to buy tmobile can he be more specific instead of "plenty of interest from other companies?"

7. Augustine

Posts: 1043; Member since: Sep 28, 2013

TMUS stock has been in a downward trend for months. When Iliad offered $32 per share, it was in the ballpark of its market price. Now, when TMUS trades for about $26, $36 per share should have been grabbed by DT, for it probably won't see another offer with almost 40% premium.

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