T-Mobile US leaves door open for improved Iliad offer

14 Aug 2014

Braxton Carter, T-Mobile US’ CFO, described Iliad’s bid for the US operator as “inadequate” but indicated a higher offer might be viewed more positively, according to The Wall Street Journal.

Carter commented at an investor conference that Iliad’s late-July offer to buy 57 per cent of the fourth-largest US operator for $15 billion in cash was “very flattering” but “a very inadequate value proposition.”

However, he went on: “I think rarely people come with their best bid to start”. He also praised Iliad’s founder Xavier Neil as a “very impressive entrepreneur”.

This contrasts with last week’s comments from Deutsche Telekom CEO Timotheus Hottges who adopted a dismissive tone towards the Iliad offer.

“We’ve always said that we’re open to transactions which increase the value,” he said, before swiping: “we don’t have such an offer at this point.”

Iliad said it does not need to increase its bid after T-Mobile US’ longterm suitor Sprint dropped out of the race because of regulatory concerns about merging the third- and fourth-largest US operators.

However, there have been suggestions that Iliad is working on a refreshed offer. The other possibility is a new bidder stepping forward, such as satellite TV broadcaster Dish Network or one of the country’s leading cable television operators. An alliance between a group of such players is another possibility.


Richard Handford

Richard is the editor of Mobile World Live’s health and money channels. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade...More

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