Around the time that Sprint ceased its effort to acquire T-Mobile US, French telecom Iliad SA made an offer of its own for T-Mo. That bid was denied by T-Mobile for being too low. We then learned that Iliad was considering making a bigger offer and now it sounds like the firm will indeed go forward with its plan.
Sources speaking to Bloomberg say that Iliad SA is planning to try and buy even more of Deutsche Telekom’s stake in T-Mobile US. Iliad is reportedly planning to stick to its original $33 per share big, but it wants to buy more than the 56 percent stake that it originally sought.
Deutsche Telekom, which owns 66 percent of T-Mobile, hasn’t made a decision on whether or not a bid for more of a stake in T-Mo would be appealing. Iliad’s current bid would give DT more cash and less of a stake in T-Mo. However, DT reportedly wants even more, with sources saying that it sees $35 per share as a a fair price.
Whether or not Iliad ever actually gets a piece of T-Mobile US remains to be seen, but it definitely sounds like the French company is determined. Iliad thinks that it can save T-Mobile around $2 billion per year by running it more efficiently. It’s now known exactly how Iliad would do that, but I’d be interested to hear Iliad’s plan.
Do you think Iliad SA will end up getting a piece of T-Mobile? Or will it end up abandoning its effort like Sprint before it?