T-Mobile Said to Plan to Turn Down Iliad's $15 Billion Offer

Tuesday, 05 Aug 2014 02:06 PM

 

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
T-Mobile US Inc. plans to turn down Iliad SA’s $15 billion deal proposal, a person with knowledge of the matter said, putting pressure on the French telecommunications company to raise its offer.

The person asked not to be named because the plans are private. Iliad, led by billionaire founder Xavier Niel, said July 31 it offered $15 billion in cash for 56.6 percent of T- Mobile. Sprint Corp., controlled by Japan’s SoftBank Corp., has been preparing an offer worth about $40 a share, people familiar with the matter have said, a combination that would probably face tough U.S. regulatory scrutiny.

Deutsche Telekom AG, which holds 67 percent of T-Mobile, considered Iliad’s initial bid as inferior to Sprint’s, a person familiar with the reaction said last week. The Bonn-based carrier’s management would consider missing out on a higher price if that meant avoiding the uncertainty of a prolonged antitrust review, other people said.

Still, a higher offer would heighten concern among Iliad investors that the company, valued at 11 billion euros ($15 billion), will stretch its finances too thin by taking control of T-Mobile. The Bellevue, Washington-based operator has almost twice Iliad’s market value and may have to spend billions of dollars on spectrum and network construction in coming years. Iliad shares fell the most in almost eight years the day after it disclosed its bid.

Deutsche Telekom wants to avoid reliving its 2011 attempt to sell T-Mobile to AT&T Inc. for $39 billion. The accord was initially hailed as a dealmaking success for Deutsche Telekom, until it was blocked by the U.S. Federal Communications Commission and the Department of Justice.

Anne Marshall, a spokeswoman for T-Mobile, declined to comment.

© Copyright 2014 Bloomberg News. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Leon Cooperman: Cuba 'Very Far Down on My List' for Investing

Wednesday, 17 Dec 2014 17:32 PM

While the U.S. government's decision Wednesday to resume full diplomatic relations with Cuba stirred starry-eyed talk of . . .

Ending of Cuban Embargo 'Will Be Fantastic' for Cigar Fans

Wednesday, 17 Dec 2014 17:15 PM

President Barack Obama's decision to resume full diplomatic relations with Cuba has made happy campers out of cigar reta . . .

Yellen: Russia Spillover to US Economy Likely to Be Small

Wednesday, 17 Dec 2014 16:45 PM

Federal Reserve Chair Janet Yellen said that she and her colleagues discussed Russia’s economic crisis at this week’s po . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved