French challenger Iliad has made a surprise US$15bn cash offer for 56.6% of T-Mobile US, valuing its shares at US$33 each. Iliad said its offers values the remaining 43.4% of T-Mobile at US$40.5 per share on the basis of the US$10bn in synergies that…
French challenger Iliad has made a surprise US$15bn cash offer for 56.6% of T-Mobile US, valuing its shares at US$33 each.
Iliad said its offers values the remaining 43.4% of T-Mobile at US$40.5 per share on the basis of the US$10bn in synergies that will be generated, which T-Mobile shareholders will benefit from.
In a statement the French upstart compared itself to T-Mobile, which it said occupies a similarly disruptive position in the US market.
The deal would be financed via a combination of debt and equity and Iliad said it has the support of leading international banks for the acquisition debt. The equity portion will be approximately €2bn, and Iliad’s owner Xavier Niel would participate in the capital increase.
Iliad’s interest rivals that of Sprint Corp, which has been in talks with T-Mobile’s parent Deutsche Telekom for months. Sprint and its owner, Japanese group Softbank, have been working on a massive financing package to acquire the operator.
However, any merger between the US rivals is expected to face severe scrutiny from regulators and the consensus amongst analysts is that a deal would be blocked.
More to follow
