Iliad seeks partners to boost bid for T-Mobile

Iliad seeks partners to boost bid for T-Mobile
Expecting its $15 billion bid for 56.6% of T-Mobile to be officially rejected by Deutsche Telekom, French telecom company Iliad is seeking partners to help it improve its offer. Those familiar with the plan say that Iliad is hoping that by adding partners, it can raise its bid for T-Mobile above the $33 per share that it offered. The shares are trading above $34 as Wall Street waits for Sprint to officially announce its expected $40 a share acquisition of T-Mobile.

While there had been talk earlier that Deutsche Telekom, the Germany firm that owns 67% of T-Mobile's stock, had already rejected Iliad's bid, there have been conflicting reports on whether this has already happened. Today, the Financial Times reported that Deutsche Telekom will soon make it official and reject the Iliad bid as being too low. Sprint is rumored to have already worked out with T-Mobile, the broad strokes of a deal that values all of T-Mobile at $32 billion.

Iliad, an upstart telecom company, is said to be talking to Dish Network, Cox Communications and Charter Communications, along with a number of pension funds and hedge funds. Dish would be an interesting partner considering that it has already won some spectrum in an auction earlier this year, and Chairman Charles Ergen has been vocal in his desire to own a mobile carrier. Late last year, there was speculation that Dish would go after T-Mobile. We wouldn't be surprised to see Dish either join Iliad's group, or make a separate bid for T-Mobile.

Meanwhile, T-Mobile has rejected demands from Iliad for more financial information from the carrier.

source: Reuters

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7 Comments

1. domfonusr

Posts: 1057; Member since: Jan 17, 2014

It would be nice to keep T-Mobile and Sprint separate, so that we keep the four-carrier model going, so Iliad and partners buying T-Mobile, rather than Softbank, sounds much better for the market. As long as there is enough help out there for both Sprint and T-Mobile to be nurtured to full health, I am for keeping all four major carriers separate. Also, it would be nice to see someone give Dish Network an outlet for their mobile network aspirations...

2. fatTony

Posts: 113; Member since: Dec 20, 2012

I couldn't agree more. I guess we can count ourselves lucky, especially since the WSJ just reported that Sprint Plans To Abandon Its Pursuit Of T-Mobile. One less "suitor"

3. Augustine

Posts: 1043; Member since: Sep 28, 2013

We need Iliad badly in this country. Here's what its customers get in France for mere €20 or $27: - Unlimited calls to 100 countries - Unlimited SMS/MMS in France - Unlimited SMS to 100 countries - 20GB 4G (throttled afterwards) (Source: mobile.free.fr )

5. Neo_Huang

Posts: 1067; Member since: Dec 06, 2013

Holy crap...but does that include activation fees?

6. Augustine

Posts: 1043; Member since: Sep 28, 2013

No sign up fees that I can tell. But, if you commit to 2 years, you get a €5 discount!

8. alexandrecastro

Posts: 26; Member since: Feb 23, 2014

$21 if you also use their service for home internet oh, and by the way there's no contract

4. BobbyDigital

Posts: 2124; Member since: May 29, 2014

Apparently that Sprint deal isn't happening. -http://phandroid.com/2014/08/05/sprint-is-reportedly-withdrawing-their-offer-to-buy-t-mobile/ And Hesse is getting the boot as well. Allegedly.

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