Bidding war for TMUS just confirmed by Lliad! $33 values at $40.5....let run up begin! Sprint will pay more!
12:40 EDT TMUS Iliad offers $15B in cash for 56.6% of T-Mobile at $33 per share
12:40 EDT TMUS Iliad confirms interest in T-Mobile
Following press speculation, Iliad (ILIAF) confirms its interest in T-Mobile US (TMUS). The US mobile market is large and attractive. T-Mobile US has successfully established a disruptive position, which in many ways, is similar to the one Iliad has built in France. Iliad has submitted to T-Mobile's board an indicative offer for T-Mobile US. Iliad has offered $15B in cash for 56.6% of T-Mobile US, at $33 per share. Iliad values the remaining 43.4% of T-Mobile US at $40.5 per share on the basis of $10B of synergies tot he benefit of T-Mobile US shareholders. This leads to an overall value of $36.2 per share, a premium of 42% over T-Mobile US's unaffected share price of $25.4. Iliad has the support of leading international banks for the acquisition debt. The equity portion would be approximately EUR2B and Xavier Neal would participate in the capital increase. The transaction should not raise any antitrust issues in light of the competition rules given that Iliad is not present in the U.S