Free throws in the towel in the United States – Echoes

Deutsche Telekom declined the new Iliad offer to purchase T-Mobile US

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Xavier Niel gives up his dreams of conquest of the West. Iliad announced yesterday to terminate its proposed acquisition of T-Mobile US’s subsidiary Deutsche Telekom. The decision was taken after the refusal of the German telecoms operator to respond to the new offer of the French group.

The parent of Free had nevertheless improved its offer, after being spurned for the first time in August. It provided a redemption of the entire shareholding of Deutsche Telekom stake in T-Mobile US, 67% of the shares. The proposed price was the same as the first offer submitted late July $ 33 per share. In total, Iliad was ready to put on, with its partners, $ 18 billion on the table to offer the American number four telecom and enter a market with juicy margins.

To achieve this, the group of Xavier Niel had managed to convince two major American investment funds, including KKR, to follow: according to our information, they had decided to bring $ 2.5 billion. Several major international banks were also ready to follow Iliad, including BNP Paribas and HSBC. The deal was finalized in early last week. And discussions with Deutsche Telekom to discuss the new offer had resumed last Thursday. After a few days of reflection, it is ultimately late Monday afternoon that the ax fell at T-Mobile and its parent.

No third offer

The price will certainly have been right folder Free. Since receiving the first offer of the French, Deutsche Telekom has always indicated that, besides the fact that he wished to give the most possible titles, he was not ready to give up his American assets less than $ 35 per share .

Annoyed, the French telecom operator has decided to throw in the towel, not bothering to work on a third offer. Its leaders have regularly suggested that they not be acharneraient for months to convince Deutsche Telekom to sell its American subsidiary. “ Iliad had the ambition to accelerate the transformation of T-Mobile US including the completion of more than $ 2 billion of annual cost savings. The transaction would create significant value for shareholders of Iliad and T-Mobile US “bitterly regretted the French group said in a statement last night.

Deutsche Telekom is going to wait a few months to possibly find a buyer for T-Mobile US. The authority of the American competition giving veto a takeover by Sprint, the case looks complicated. Unless the satellite operator Dish did put in the running. As for Xavier Niel, he will be able to refocus on its French business. This is not necessarily good news for its competitors.