Seeking Alpha

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

  • 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.
Comments (3)
  • bmdelahu
    , contributor
    Comments (29) | Send Message
     
    I think we should look at how T Mobile did gaining customers in the last quarter and build on that instead of worrying who might or might not buy them.
    13 Aug 2014, 07:12 PM Reply Like
  • NLTInvestor
    , contributor
    Comments (333) | Send Message
     
    tmus has a 150% d/e.. not too egregious in my books
    13 Aug 2014, 07:26 PM Reply Like
  • Yankeeworld3
    , contributor
    Comments (107) | Send Message
     
    I bet TMUS investors aren't even T-Mobile customers. Their service stinks, they overcharge and it's almost impossible to get their advertised rate. They'll pay your cancellation fees alright....if you buy a $500 phone. Short TMUS.
    13 Aug 2014, 09:22 PM Reply Like
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