T-Mobile: Iliad's offer "very inadequate"

|About: Iliad Akt (ILIAF)|By:, SA News Editor

Iliad's (OTC:ILIAF) $33/share offer to buy a 56.6% stake in T-Mobile USA (TMUS -1.6%) is "very flattering," but also "a very inadequate value proposition," says T-Mobile CFO Braxton Carter.

However, Carter, whose company just saw Sprint abandon its attempt to buy it (for now) due to FCC/DOJ opposition, suggests T-Mobile is open to a better offer. "I think rarely people come with their best bid to start."

For the time being, Iliad insists there's no need for a higher offer - T-Mobile currently trades at $29.14. But the French carrier has been reported to be reaching out to potential investors to sweeten its bid.

Dish Network (DISH +1%) is also viewed as a potential T-Mobile suitor. Dish is still trying to find a use for its spectrum assets, and Charlie Ergen has repeatedly suggested he's open to a T-Mobile merger. But there are doubts about Dish's ability to pull off a deal, given both Dish and T-Mobile have plenty of high-yield debt on their balance sheets.