Iliad abandons its quest to buy T-Mobile
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