Oct. 13, 2014, 1:26 PM
- France's Iliad (OTC:ILIAF) has abandoned its bid to acquire T-Mobile USA (TMUS -3.6%). T-Mobile has fallen sharply on the news.
- Bloomberg previously reported Iliad had set a mid-October deadline to up its initial (rejected) offer for T-Mobile, or walk away. Deutsche Telekom (OTCQX:DTEGY) was believed to be skeptical about Iliad's ability to run T-Mobile, and also nervous about selling one of its few growth assets.
- Update: Iliad says it abandoned its bid after Deutsche Telekom and certain T-Mobile board members "refused to entertain" an offer for a 67% stake (up from a prior 56.6%).
Oct. 10, 2014, 9:34 AM
- Jefferies' Mike McCormack: "While shares have lagged following abandoned M&A discussions with Sprint, we believe that the market is improperly discounting the co's subscriber momentum, EBITDA growth, & inflecting FCF, with underappreciated value assigned to [MetroPCS] synergies."
- McCormack has upgraded T-Mobile (NYSE:TMUS) to Buy, and lifted his target by $5 to $35. Though calling the "Uncarrier" an "attractive acquisition candidate," his target doesn't assume any M&A upside.
- Three weeks ago, McCormack declared T-Mobile "continues to deliver disproportional subscriber growth" on the back of aggressive pricing and innovative promotions. CEO John Legere has said T-Mobile posted 552K postpaid and 208K prepaid branded net adds in August alone - the former figure was a new high. T-Mobile had 908K postpaid and 102K prepaid branded net adds in Q2.
Oct. 2, 2014, 1:53 PM
- Sources tell Bloomberg Iliad's (OTC:ILIAF) revised offer for T-Mobile USA (TMUS +3%) would involve taking a "significantly larger stake" than its previous offer of 56.6%. However, its $33/share offer price would remain unchanged.
- Parent Deutsche Telekom (OTCQX:DTEGY), reportedly open to a $35/share deal, is said to be undecided on whether Iliad's revised offer would be adequate.
- Notably, Bloomberg adds Iliad has "had some success signing up financial partners to back its efforts." The company has reportedly discussed raising as much as $5B in stock and debt for an improved bid.
- T-Mobile has added to its gains, and is nearing $29.
- Earlier: Iliad reportedly prepping bigger offer for T-Mobile
Oct. 2, 2014, 1:21 PM
- Bloomberg reports Iliad (OTC:ILIAF) is prepping an offer that would involve the French carrier acquiring a larger T-Mobile USA (TMUS +1.4%) stake. Iliad previously made a rejected $33/share offer for a 56.6% stake.
- Iliad is believed to have set a mid-October deadline for upping its T-Mobile bid or walking away, and has made outreaches to P-E firms. T-Mobile parent Deutsche Telekom (OTCQX:DTEGY) is reportedly wary of Iliad's overtures.
- T-Mobile has caught a bid on the report. However, shares remain well below Iliad's original offer price.
Oct. 2, 2014, 2:42 AM
- The FCC is prepping its upcoming auction of frequencies known as AWS-3, scheduled to begin on Nov. 13. The auction is expected to raise at least $10B and will include airwaves previously occupied by multiple federal users.
- A total of 80 entities submitted initial applications, including Dish Network (NASDAQ:DISH) and three of the four largest U.S. wireless carriers - Verizon (NYSE:VZ), AT&T (NYSE:T) and T-Mobile (NYSE:TMUS).
- Sprint (NYSE:S) is planning sit out on the auction to save firepower for a major sale of low-frequency airwaves scheduled for next year.
Sep. 26, 2014, 4:00 PM
- Deutsche Telekom (OTCQX:DTEGY) is "preparing for the possibility" of keeping its T-Mobile USA (TMUS +1.4%) stake for at least another year if Iliad (OTC:ILIAF) fails to sufficiently improve its offer, sources tell Reuters.
- Iliad has reportedly set a mid-October deadline to improve its T-Mobile bid, after an initial $33/share offer for a 56.6% stake was rejected. Multiple reports have stated DT has its concerns about selling to to Iliad, especially given T-Mobile (unlike many of DT's European assets) is showing healthy growth.
- T-Mobile has dipped on the Reuters report, but is closing higher. Earlier today, Pac Crest argued T-Mobile should reject any offer below $40/share, given its recent performance. The firm added its retail checks indicated a pickup in switching activity (to T-Mobile) and termination fee reimbursements following the iPhone 6 launch.
Sep. 19, 2014, 6:30 PM
- Iliad (OTC:ILIAF) has set a mid-October deadline to either make a new T-Mobile USA (NYSE:TMUS) offer or walk away, Reuters reports. The French carrier is said to be talking with U.S. banks to help finance a higher bid.
- Reuters adds Iliad "faces resistance" from Deutsche Telekom (OTCQX:DTEGY), which would keep a minority T-Mobile stake under Iliad's proposed deal terms and is skeptical of the company's prospects in a market it currently has no presence in.
- Bloomberg reported earlier today Iliad was struggling to line up 3rd-party investors, and that DT's board was divided on whether it should "sell its only growing asset." Sources (within Iliad?) tell Reuters Iliad's management has "finished road shows to meet U.S. investors and is waiting to hear back from potential investors."
Sep. 19, 2014, 2:22 PM
- Iliad's (OTC:ILIAF) talks with KKR and other investment firms to make a joint bid for T-Mobile USA (TMUS -1%) haven't yet borne fruit, Bloomberg reports. The French carrier's $33/share bid for a 56.6% stake was shot down last month.
- Meanwhile, Deutsche Telekom (OTCQX:DTEGY), recently reported to be open to a $35/share offer for T-Mobile USA, is said to be split on whether it should "sell its only growing asset."
- Bloomberg adds Iliad has "discussed raising as much as $5 billion in additional debt and equity for a sweetened offer." Likely acting as a hurdle: T-Mobile, which has over $17B in debt, is investing heavily to build out its 4G network and grow its spectrum portfolio, and is sacrificing margins to gain share, isn't a conventional P-E target.
- Prior T-Mobile/Iliad coverage
Sep. 12, 2014, 11:46 AM
- T-Mobile US (TMUS +1.7%) added 552K postpaid customers in August, more customer additions than any other month in the company's history, and added 208K prepaid customers, CEO John Legere tells investors at the Goldman Conference in NYC.
- The wave of new subscribers was in part due to the popularity of a promotion that allows customers to add four lines for $100/month, Legere says.
- Earlier, Argus upgraded shares to Buy from Hold with a $40 price target, saying a series of innovative plans promoted with razzle-dazzle marketing is gaining traction with subscribers; the firm also expects the latest TMUS offer, which facilitates Wi-Fi communications and interoperability with the cellular network, to resonate with subscribers.
Sep. 11, 2014, 2:22 AM
- T-Mobile (NYSE:TMUS) will provide in-home Wi-Fi antennas called T-Mobile Personal CellSpots for free, enabling phones to now make calls and send texts over Wi-Fi.
- The new device is in response to many customer complaints of dropped calls in homes and buildings. Until recently, the carrier held very little low-frequency airwaves which are best for penetrating walls.
Sep. 10, 2014, 6:45 PM| Comment!
Sep. 8, 2014, 6:24 PM
- T-Mobile US (NYSE:TMUS) says beginning Sept. 17 it will beat other wireless companies’ offers for smartphone trade-ins, in an attempt to attract customers who want to exchange their phones for devices such as Apple’s new iPhone.
- TMUS says it will track the market for trade-ins to make sure its prices are better; if a customer finds a better offer from a national competitor, the company will top it and give the user an additional $50.
- “We’re going to see some of the most phenomenal devices ever in the coming months, and that means a whole lot of Americans trading in their devices and upgrading,” TMUS CEO John Legere says.
Sep. 5, 2014, 4:35 PM
- Dish (DISH +0.9%) CEO Charlie Ergen contacted Deutsche Telekom (OTCQX:DTEGY) to let the carrier know he's interested in a deal to buy T-Mobile USA (TMUS +1.3%), sources tell Bloomberg. T-Mobile spiked shortly before the close on the report.
- Ergen hasn't been shy about making his interest in T-Mobile public, as Dish continues looking for ways to put its 4G spectrum to use. Sources caution Dish hasn't yet hired a bank to help pursue a bid, and that its seriousness is unclear.
- Bloomberg reported last week DT is open to a T-Mobile deal at $35/share. French carrier Iliad is trying to partner with P-E firms to sweeten its T-Mobile bid, after an initial $33/share offer for a 56.6% stake was rebuffed.
Sep. 3, 2014, 4:12 PM
- T-Mobile (TMUS +0.2%) is selling senior notes due 2023 and 2025. The offering's size and pricing are undisclosed for now.
- The self-proclaimed Un-carrier says proceeds will be used for "general corporate purposes, which may include capital investments, acquisition of additional spectrum and repayment of certain indebtedness."
- The offering's prospectus suggests at least some of the funds will be used at a November auction for spectrum in the high-frequency AWS-3 band. A bigger auction for low-frequency spectrum (badly sought by T-Mobile and Sprint to improve their rural/suburban coverage) is due next year.
- T-Mobile had $17.1B in debt as of June 30, and $3.1B in cash.
Sep. 1, 2014, 7:18 AM
- Despite its first bid at T-Mobile USA (NYSE:TMUS) being rebuffed, Iliad (OTC:ILIAF) says it is continuing to pursue a 56.6% stake of the mobile operator, and may now even partner with private equity funds to raise its offer.
- Iliad previously offered a bid of $33/share, although T-Mobile USA called the offer "a very inadequate value proposition."
- A report from Bloomberg last week announced that parent Deutsche Telekom (OTCQX:DTEGY) is open to holding talks to sell T-Mobile USA for $35/share or more.
Aug. 28, 2014, 1:03 PM
- Bloomberg reports Deutsche Telekom (OTCQX:DTEGY) is open to holding talks to sell T-Mobile USA (TMUS +2.1%) at $35/share or more. T-Mobile has risen above $30 in response.
- DT owns 67% of T-Mobile USA. French carrier Iliad (OTC:ILIAF) has offered $33/share for a 56.6% stake in T-Mobile, a bid T-Mobile has dismissed as "very inadequate."
- Sprint was rumored to be prepping a $40/share bid before abandoning its plans due to regulatory opposition.
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T-Mobile US Inc provideswireless communication servicesin the postpaid, prepaid, and wholesale markets.The Company's products and services includevoice, messaging, data services,wireless devices, smartphones and other mobile communication devices.
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