Iliad Drops T-Mobile US Bid

Iliad has abandoned its bid to buy T-Mobile US, the French upstart announced Monday.

Iliad, a competitive operator in France, ditched its efforts to merge with the "un-carrier" after a second bid was rejected, it revealed in a statement issued on Monday after the French financial markets had closed. (See Iliad Ends Pursuit of T-Mobile US.)

It noted:

    The Iliad Group announces that it puts an end to its project of acquiring T-Mobile US, following exchanges with Deutsche Telekom and selected board members of T-Mobile US who have refused to entertain its new offer.

Iliad (Euronext: ILD) says it had improved the terms of its deal "significantly," but still got rejected, leaving it with no option but to abandon its efforts with a typically Gallic shrug. (See Eurobites: Iliad Wants Larger Stake in T-Mob.)

Keep up with the latest in industry developments on our mobile channel here on Light Reading.

Iliad first put in a long-shot $15 billion bid for T-Mobile US Inc. at the end of July, but that was swiftly rejected. (See Iliad Offers $15B for a Stake in T-Mobile and T-Mobile Rejects Initial Iliad Bid – WSJ.)

The operator said it worked with "a consortium" of "two leading private equity funds and Tier-1 international banks" to sweeten its offer, but the response from T-Mobile US and Deutsche Telekom AG (NYSE: DT) remained the same.

That doesn't mean we've heard the end of M&A chatter around T-Mobile this year. Dish Network LLC (Nasdaq: DISH) is still said to be sniffing around the operator. (See Eurobites: Dish Dials DT Over T-Mobile Bid.)

— Dan Jones, Mobile Editor, Light Reading

KBode 10/14/2014 | 11:46:38 AM
Re: drops bid I'm thinking Dish just acquires spectrum and offloads it for a pretty penny after a few years of Ergen waving his hands a lot. They seem more curious than serious to me. Though of all the options remaining, I guess a Dish/T-Mobile tie up is the most likely?
danielcawrey 10/13/2014 | 8:21:19 PM
Re: drops bid I think someone will end up buying T-Mobile, I just don't know who anymore. Will it be DISH Network?

Maybe, but I would expect a buyer like that to strip T-Mobile to the bone. DISH is well-known for trying to squeeze every last bit of value out of its operations, and I have no doubt they will do the same with T-Mobile. 
DanJones 10/13/2014 | 4:59:37 PM
Re: Why is T-mobile so attractive as an acquisition? Simple. It's the largest mobile subscriber base in the US that is still -- in theory -- feasible for a large operator to buy. AT&T and Verizon are too massive. Sprint is off the table after SoftBank. So, T-mobile.
Ariella 10/13/2014 | 3:02:33 PM
Re: drops bid @Ray Do you have another company in mind as its next potential target?
[email protected] 10/13/2014 | 2:57:21 PM
Re: drops bid I am surprised, though it may be more that the banks/equity houses would only go so far. Iliad is VERY ambitious. Don't rule it out of US market yet.
mhhf1ve 10/13/2014 | 2:54:35 PM
Why is T-mobile so attractive as an acquisition? Okay, so it's gaining subscription momentum to take 3rd place away from Sprint, but does an acquisition of T-mobile actually make sense for these potential acquirers? 
Ariella 10/13/2014 | 2:40:45 PM
drops bid Given that it was a long shot, I guess that people weren't realy shocked at the news. 
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