Report: T-Mobile USA targeted for private equity buyout
The private equity firms who have heard the pitch are said to be skeptical because of the size and cost of financing it. Atlantic Equities analyst Christopher Watts puts a value of $30 billion on the unit and says that its mobile phone frequencies are the most valuable part of the company. T-Mobile has sought to cut-back its spending by closing call-centers and jobs. Last year's $39 billion offer from AT&T to buy the carrier was rejected by U.S. regulators and T-Mobile owner Deutsche Telekom has decided to lower its exposure to the States.
getting a source of cheap financing and according to Tom Taulli, an M&A consultant, financing is currently cheap. But that doesn't mean that a deal will get done. Taulli points out that there haven't been many $10 billion plus LBOs lately.
While Deitsche Telekom refused to comment on the story, the company is allegedly open to a sale of all or part of its U.S assets including T-Mobile, and would prefer to invest in its European operations. A person with inside knowledge says that Deutsche Telekom's board has not discussed a sale of T-Mobile to any private equity firm.