Join us at TNW Conference 2021 for insights into the future of tech →

The heart of tech

This article was published on July 31, 2014


French telecom Iliad makes an offer for T-Mobile USA

French telecom Iliad makes an offer for T-Mobile USA Image by: Andrew Burton
Josh Ong
Story by

Josh Ong

Josh Ong is the US Editor at The Next Web. He previously worked as TNW's China Editor and LA Reporter. Follow him on Twitter or email him a Josh Ong is the US Editor at The Next Web. He previously worked as TNW's China Editor and LA Reporter. Follow him on Twitter or email him at [email protected].

French telecommunications company Iliad has confirmed (PDF) submission of a buyout offer to T-Mobile USA. The proposal includes $15 billion in cash ($33 per share) for a 56.6 percent stake in the company, and then $40.5 per share for the remaining 43.4 percent, based on $10 billion in potential cost savings.

Iliad’s offer values T-Mobile shares at $36.20 on average. The company would use a mix of debt and equity to finance the deal. T-Mobile’s board of directors now has an opportunity to respond.

Meanwhile, Sprint and its parent company SoftBank have reportedly been preparing their own $32 billion bid for T-Mobile. Iliad has a smaller market capitalization than T-Mobile, so the deal is something of a stretch. However, Iliad doesn’t yet operate in the US, so that could give a better shot at getting regulatory approval for an acquisition.

T-Mobile stock is up more than 6 percent on today’s news.

Iliad confirms its interest in T-Mobile US (h/t Business Insider)

Photo credit: Andrew Burton/Getty Images