Tuesday, October 14, 2014

Iliad stops perusing T-Mobile

It seems that the suitor well for Bellevue-based T-Mobile has dried up for the foreseeable future. The French-based Iliad group decided to take a look at other prospects after T-Mobile's parent company Deutsche Telekom said no to a second bid to buy the Bellevue-based cellular provider.

The Ilaid group first became interested in back in July when the French company was looking to grab a foothold in the United States cellular business. From the very start Iliad had some competition as Sprint-Nextel was also bidding to win the hand of the Bellevue-based T-Mobile. For the next months both suitors wined and dined T-Mobile until early in August when T-Mobile told Iliad that their offer just wasn't good enough. The next day Sprint-Nextel walked out leaving T-Mobile standing alone again.

Not long after the double break up Iliad went to T-Mobile's parent company Deutsche Telekom to say they would look for help to make a better offer. When the Iliad group came back they said they were prepared to up their offer from 56.6% of T-Mobile's stock to 67%. At hearing the terms both Duetsche Telekom and T-Mobile said no. With that second rejection Iliad said we will not try again.

"There haven't been any other viable offers that have emerged since Sprint backed out, and that was not a formal offer to boot. There may be some questions about the price a larger buyer is prepared to pay in turn for a regulatory battle they may have to face," said Bill Menezes, an analyst at Gartner.

Dish Network also had at onetime showed some interest in T-Mobile but seems to have had cold feet and backed out. At one point Dish had said that they probably would not make an offer until after the spectrum auctions in November so there is still a chance they are in the running.
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