After making a failed attempt to purchase Deutsche Telekom AG (DTE)’s T-Mobile US Inc (NYSE:TMUS) unit, Billionaire Xavier Niel’s Iliad SA (EPA:ILD) is making another move by talking with other buyout firms to improve the offer for the German company.
In an article published on businessweek.com, Iliad SA (EPA:ILD) is focusing on offering better valuation after reports came out that Deutsche Telekom is willing to negotiate with suitors that would offer an amount not less than $35 a share. Even after such indications, no buyers have made any positive move, and there are no signs of any doing so just yet. Iliad SA (EPA:ILD) had earlier offered $33 per share or $15 billion dollars for a 56.6% stake of T-Mobile US Inc (NYSE:TMUS), which was rejected.
Companies that had earlier shown interest in T-Mobile are Dish Network Corp. and Sprint Corporation (NYSE:S). However, Sprint Corporation (NYSE:S). withdrew from the talks fearing that US regulators may block a deal that would reduce the number of US wireless providers from the current four to three.
Details published on Bloomberg show that Deutsche Telekom owns 67% of Bellevue, Washington-based T-Mobile. The company may after all forgo further price negotiations to cushion itself from the uncertainties of the ongoing regulatory review, which might impact negatively on the sale. In 2011, a deal by Deutsche Telekom to sell T-Mobile US Inc (NYSE:TMUS) at a price of $39 billion was stalled after it received opposition from the US Department of Justice and US Federal Communications Commission.
If a deal is reached between Deutsche Telekom and Iliad SA (EPA:ILD) for the sale of T-Mobile US Inc (NYSE:TMUS), Xavier Niel’s shall have made a big leap in his business life, and of course it’s his boldest move till so far.
This article has been written by Victor Ochieng.