Date
17 October 2017
T-Mobile US has received a surprise bid from French telecoms upstart Iliad, following an earlier offer from Sprint. Photo: Bloomberg
T-Mobile US has received a surprise bid from French telecoms upstart Iliad, following an earlier offer from Sprint. Photo: Bloomberg

France’s Iliad bids for T-Mobile US, countering Sprint

French telecoms firm Iliad SA has made a buyout offer for T-Mobile US Inc., setting the stage for a potential bidding war with Sprint Corp.

Iliad offered US$15 billion in cash, or US$33 a share, for 56.6 percent of T-Mobile US, the Wall Street Journal reported Thursday.

T-Mobile US had a market value of US$24.8 billion before news of Iliad’s interest surfaced.

Iliad, which had sparked a fierce price war in France’s mobile-telephone market, sees the offer as a “one-time opportunity to enter the world’s-largest telecoms market,” a source told the Journal.

T-Mobile had been in talks for months on a merger deal with larger US rival Sprint. The two sides are said to have agreed on the broad outlines of a deal valuing T-Mobile US at more than US$30 billion.

Despite the lower offer, Iliad believes it has a strong card to play because its bid will not face the antitrust scrutiny that confronts Sprint in trying to merge with T-Mobile US, Reuters noted.

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RC

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