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T-Mobile Rejects Initial Iliad Bid – WSJ

Quelle surprise! T-Mobile has reportedly rejected French operator Iliad's surprise initial bid to take control of the US operator.

The Wall Street Journal quotes sources Tuesday saying that T-Mobile US Inc. considers the bid "dead on arrival" and has refused to open its books to Iliad (Euronext: ILD) for due diligence.

Get the latest on T-Mobile's merger machinations here on the site.

Iliad made a surprise $15 billion bid for T-Mobile last Thursday. Given the bigger market cap of T-Mobile, the bid always seemed unlikely to get much traction. (See Iliad Offers $15B for a Stake in T-Mobile and Eurobites: Iliad Slumps on T-Mobile Bidding Battle Fears.)

Reuters had earlier reported that T-Mobile's parent, Deutsche Telekom AG (NYSE: DT), was looking for more money from the proposed deal. (See Eurobites: Iliad Needs to Up Its T-Mobile Bid .)

— Dan Jones, Mobile Editor, Light Reading

sam masud 8/7/2014 | 1:40:48 PM
Re: slow news... or some crazy stock pumping scheme? What do you think Iliad ought to have offered to make its bid newworthy? Would $16 billion be about right?
DanJones 8/6/2014 | 10:25:19 PM
Re: slow news... or some crazy stock pumping scheme? Just wanted to close the loop on this weird bid. My contact doesn't allow me to own stock in any company I write about. Not sure a lower bid would affect the reputed higher bid from Sprint much, kinda a moot point now anyway.
mhhf1ve 8/6/2014 | 5:49:07 PM
slow news... or some crazy stock pumping scheme? This news makes me wonder if reporters just wanted to publish this rejection because they knew about it (not because it's all that newsworthy)... or if there's some crazy scheme to try to boost T-Mobile's stock price going on to prevent any other buyers from trying to bid on T-mobile...?

Ariella 8/6/2014 | 5:34:48 PM
Re: Notta Shocker @Dan yes, so I do wonder why bother? But I suppose I should just dismiss the assumptions that people or corporations act rationally. 
DanJones 8/6/2014 | 4:43:26 PM
Re: Notta Shocker Not really, the only theory that makes any shred of sense to me if there's more bidders for T-Mobile out there and Iliad wanted in, and that *still* doesn't make sense! There's no way they could get it done unless they could mobilize billions more in capital right?
Ariella 8/6/2014 | 12:30:35 PM
Re: Notta Shocker @Dan any theories on why they put the offer out at all?
DanJones 8/5/2014 | 5:58:58 PM
Notta Shocker Not too shocked by this, I wonder if Iliad can -- as they suggested -- pull together more funds? Even then, like I said its like minnow trying to a swallow a guppy. They're biting off more than they can chew.
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