French telco Iliad will reportedly decide whether to submit an improved bid for T-Mobile US by mid-October. Iliad’s management is holding talks with a number of US banks and investors, including private equity firm KKR, in an effort to improve its…
French telco Iliad will reportedly decide whether to submit an improved bid for T-Mobile US by mid-October.
Iliad’s management is holding talks with a number of US banks and investors, including private equity firm KKR, in an effort to improve its earlier US$15bn offer by raising an extra US$5-6.5bn, according to a Reuters report citing sources familiar with the situation.
However, T-Mobile’s majority owner Deutsche Telekom (DT) is reportedly concerned about Iliad’s not having a track record in the country and may be reluctant to sell.
In an emailed statement, DT reiterated that the company is open to transaction opportunities but that any deal would need to add more value to T-Mobile US shareholders than a stand-alone case.
The German incumbent may also reportedly be willing to delay any decision on the future of its US subsidiary until after the November spectrum auction in the country.
Two sources were quoted telling Reuters that Iliad could offer between US$35 and US$40 per share for between 60% and 90% of T-Mobile, if the deal attracts enough interest from private equity funds and banks.
In early August, Iliad’s opportunistic US$33 per share cash offer for a 56.6% stake in T-Mobile US was deemed insufficient by DT’s board and therefore rejected.
The bid came as the US’ third-largest operator, Softbank-owned Sprint, shelved its plans to take over T-Mobile over regulatory concerns.
Iliad declined to comment, while T-Mobile US and KKR did not respond to a request for comment.
