Iliad Backs Off From Acquiring T-Mobile

Iliad Backs Off From Acquiring T-Mobile

Iliad Backs Off From Acquiring T-Mobile

Deutsche Telekom and T-Mobile declined the new offer of Iliad to acquire the US-based mobile service provider. This was revealed recently by the French telecom provider as its bid in acquiring T-Mobile US ended recently.

The company confirmed the end of its bid to acquire the company in a recent statement. This came after the US mobile service provider and its parent company declined its newest offer. The French company offered around $15 billion last July or around $33 for every share for a 56.6 percent share of T-Mobile.

The latest offer of the French company was a 67 percent stake of the company. Iliad indicated that the new offer for the US-based mobile service provider was equivalent to around $36 for every share when the cash and value of the deal are factored in.

Shares of T-Mobile went down by 3 percent at $26.82 per share. The announcement by the French company follows months of uncertainty about the fate of T-Mobile. The mobile service provider is the fourth biggest carrier in the United States in terms of subscriber base. There were indications that it may merge with Sprint. However, Sprint and Softbank, its parent company from Japan, withdrew its offer following scrutiny by regulators. This allowed the French company to move in.

On the other hand, T-Mobile increased its strength under the “Uncarrier” campaign as the company is anticipated to increase its subscriber base in the third quarter. The company has already acquired a good number of subscribers in August. The company was able to sign up around 2.75 million new subscribers for the month.

The US-based company is expected to exceed the subscriber base of Sprint before the year ends even as Iliad backed off from its plan of acquiring it.

Posted by on Monday October 20 2014, 4:50 AM EST. Ref: CNET. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0

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