Deutsche Telekom AG (ADR) (OTCMKTS:DTEGY) (ETR:DTE) is willing to enter into negotiations to sell T-Mobile US Inc (NYSE:TMUS) if the proposed price is $35 per share or higher, according to report from Bloomberg based on information from a person familiar with the situation.
The valuation of T-Mobile US Inc (NYSE:TMUS) was discussed by senior managers of Deutsche Telekom AG (ADR) (OTCMKTS:DTEGY) (ETR:DTE) during a strategy meeting in Berlin, according to a source who requested anonymity because the deliberation was confidential.
Deutsche Telekom rejects Iliad’s bid
The person also stated that the German telecommunications company rejected the $33 per share takeover bid by Iliad SA (EPA:ILD) for T-Mobile US Inc (NYSE:TMUS). Deutsche Telekom AG (ADR) (OTCMKTS:DTEGY) (ETR:DTE) did not receive an increased offer from the French telecommunications company.
Deutsche Telekom spokesperson, Philipp Kornstaedt refused to comment on the report, but he reiterated the previous position of CEO Timotheus Hoettges that any offer for T-Mobile US Inc (NYSE:TMUS) should exceed its standalone value.
Observers in the industry suggested that the valuation of the German telecommunications company for T-Mobile opened the door for a better offer from Iliad SA (EPA:ILD) or new proposals from potential suitors such Dish Network Corp (NASDAQ:DISH).
Several Wall Street analysts suggested that Dish Network is a good match for T-Mobile US Inc (NYSE:TMUS) citing the reason that it could integrate its airwaves and national pay-TV service with the wireless carrier.
Sprint abandons takeover bid
Sprint Corporation (NYSE:S) and its parent company, Softbank Corp (TYO:9984) decided to abandon its proposal to acquire T-Mobile Inc US (NYSE:TMUS) due to strong regulatory hurdles.
U.S. regulators previously indicated that the proposed merger between the third and fourth-largest wireless carrier in the country will face thorough scrutiny, and they expressed concern that combining Sprint and T-Mobile could result to fewer choices for consumers particularly those with low-income.
Sprint Corporation (NYSE:S) named billionaire entrepreneur, Marcelo Claure as its new CEO. Following its appointment, Claure strengthened Sprint’s competition by introducing new plans such as the $60 unlimited talk, text, and data, which is $20 cheaper than the $80 unlimited plan offered by T-Mobile.