Iliad SA (EPA:ILD) (OTCMKTS:ILIAY), a French telecommunications holding company decided to abandon its bid to acquire a majority stake in T-Mobile US Inc (NYSE:TMUS).
Deutsche Telekom snubs new offer from Iliad
Deutsche Telekom AG (OTCMKTS:DTEGY) (ETR:DTE), the parent company of T-Mobile US Inc (NYSE:TMUS) declined to entertain the new proposal from Iliad SA (EPA:ILD) (OTCMKTS:ILIAY).
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Iliad SA (EPA:ILD) is now offering to purchase 67% stake in T-Mobile US Inc (NYSE:TMUS) for $36 per share. The French telecommunications holding company previously offered to acquire 56.6% stake in the fourth-largest U.S. wireless carrier for $33 per share. The proposal was rejected by T-Mobile’s board.
Iliad aims to accelerate T-Mobile’s transformation
In a statement, Iliad SA (EPA:ILD) (OTCMKTS:ILIAY) said its new proposal for T-Mobile US Inc (NYSE:TMUS) would have fitted into its group’s the strict financial policy of indebtedness and dilution.
The French telecommunications holding company said a consortium of two lead private equity funds and Tier-1 international banks allowed it to improve the terms of its new offer to acquire 67% stake in T-Mobile Inc (NYSE:TMUS).
“Iliad had the ambition to accelerate T-Mobile US’ transformation, notably by saving more than USD 2 billion of cost annually. This transaction would have created significant value for both Iliad’s and T-Mobile US’ shareholders,” according to its statement.
Iliad SA (EPA:ILD) (OTCMKTS:ILIAY) emphasized that it would continue its profitable growth policy.
Deutsche Telekom AG (OTCMKTS:DTEGY) (ETR:DTE) has been wanting to sell its 66% stake in T-Mobile US Inc (NYSE:TMUS). There had been reports that the German telecommunications company was willing to sell its stockholding in T-Mobile for $35 per share or higher.
Deutsche Telecom CEO Timotheus Hoettges previously emphasized that any offer for T-Mobile US Inc (NYSE:TMUS) should exceed its standalone value.
Sprint Corporation (NYSE:S) recently cancelled its takeover proposal for T-Mobile US Inc (NYSE:TMUS) due to strong regulatory hurdles. Iliad SA (EPA:ILD) is the third company that attempted to take over T-Mobile. AT&T Inc (NYSE:T) was the firm company to abandon its acquisition proposal for the fourth-largest U.S. wireless carrier.
The shares of T-Mobile Inc (NYSE:TMUS) declined more than 2% to $27 per share at the time of this writing around 3:11 in the afternoon in New York.