- With Deutsche Telekom (OTCQX:DTEGY -0.5%) working on a sale of its T-Mobile Netherlands unit, private-equity firm Warburg Pincus is getting into the action with a bid, Reuters reports.
- That would join bids coming together from Apax and CVC, with Bain Capital and Providence expected to jump in as well, for an asset valued up to €3B but that lags KPN and Vodafone in the market.
- In February, Warburg had hired former DT CEO Rene Obermann, who had worked in the Dutch telecom market with another Warburg partner, Andrew Sukawaty, at cable company Ziggo. Sukawaty chaired Ziggo while Obermann was its CEO.
- Ziggo now is owned by Liberty Global (LBTYA -0.6%), which itself could be bidding for T-Mobile Netherlands. A source says that Xavier Niel's Iliad (OTCPK:ILIAY) has no plans to bid.
- Earnings have been sliding at the unit. Buyout funds estimate its core earnings to come to €450M next year, which would value the business at about 6.5 times EBITDA.
- Previously: Private-equity firms prepare bids for Deutsche Telekom Dutch unit (Nov. 11 2015)