French Telecom has entered the race for acquiring T-Mobile even as Sprint made a buyout offer for the No.4 telecom carrier in the US.
The French Telecom company has offered $33 per share or $15 billion in cash for acquiring 56.6 percent of T-Mobile US. Even though the Sprint and T-Mobile have been in talks for several months and have decided upon a deal worth $32 billion, the new bidder could increase the antitrust objections to the merger. Earlier, antitrust regulators refused the AT&T offer of $39 billion and to acquire T-Mobile.
Germany’s Deutsche Telecom owns T-Mobile US and has sought to leave the country and has turned down the bid, a source mentioned. The $15 billion French Telecom’s bid was expected to be rejected as the company seeks to acquire a larger company and hopes to raise $2 billion in the equity deal.
“The US mobile market is large and attractive. T-Mobile has successfully established a disruptive position, which in many respects, is similar to the one Iliad has built in France,” said Iliad.
Iliad offered $36.20 per share of T-Mobile, a 17 percent premium after the market closed on Wednesday. On Thursday, shares of T-Mobile rose to by 6.94 percent to 32.94. Sprint owned by Softbank mentioned that its offer was superior and it was the best way for the company and T-Mobile to move forward. T-Mobile acknowledged the offer, but declined to comment.
The French company has reported €1 billion revenue in 2014 and is valued at €11.9 billion users. The company is known to offer cheap deals and effective customer service in France.
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