French telecoms firm Iliad SA has abandoned its attempt to buy T-Mobile US Inc due to resistance from majority owner Deutsche Telekom, Reuters reported on Monday.
Iliad became the third bidder to walk away from the US carrier in three years. In August, Sprint Corp. dropped its own bid to buy T-Mobile US.
While Iliad’s approach had been widely perceived as a long shot, its formal withdrawal sent shares of T-Mobile US to a 10-month low, the report noted.
A person familiar with Deutsche Telekom’s thinking was quoted as saying that the group wants to keep its US business longer since it was unconvinced that Iliad, as a newcomer to the US market, could run the business better than its current management.
Iliad had set a mid-October deadline to decide whether to improve its US$33 a share bid for 56.6 percent of the T-Mobile US, the fourth-biggest cellphone network operator in the country, sources told Reuters last month.
Deutsche Telekom, which makes about a third of its sales and a fifth of core profit in the United States, has tried to sell T-Mobile twice since late 2011 because it sees it as too small to compete with market leaders Verizon Communications Inc and AT&T Inc.
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