In its attempt to purchase Deutsche Telekom AG (ADR) (OTCMKTS:DTEGY)’s T-Mobile US Inc (NYSE:TMUS), Iliad SA (EPA:ILD) is likely to renew its bid by mid-October or get out of the deal accordingly. Iliad is likely to make a new bid of $35 to $40 per share for anywhere near 60 percent to 90 percent of shares T-Mobile.
Iliad SA (EPA:ILD) earlier faced some resistance from Deutsche Telekom AG (ADR) (OTCMKTS:DTEGY) because of a lower offer and Deutsche is doubtful about Iliad’s ability to improve the business of T-Mobile considering that the company has no track records in the United States. As of now, Iliad SA (EPA:ILD) is in discussion with different banks to raise the bid along with its existing financial partners including HSBC Holdings plc (ADR) (NYSE:HSBC) and BNP Paribas SA (EPA:BNP).
In addition to it, Iliad SA (EPA:ILD) is working with private equity funds like KKR to fund $5 billion to $6.5 billion for the bid. Thomas Reynaud, Chief Financial Officer of Iliad SA (EPA:ILD), said that the company would limit its capital increase for funding T-Mobile US Inc (NYSE:TMUS) to $2.57 billion. The French company is likely to take a decision on it bid for T-Mobile US Inc (NYSE:TMUS) by the second week of October. However, the company is not a position to pursue the acquisition deal for much longer in case of further resistance from Deutsche Telekom AG (ADR) (OTCMKTS:DTEGY).
Earlier, Iliad SA (EPA:ILD) proposed a bid of $33 per share or $15 billion to purchase a 56.5% stake in T-Mobile US Inc (NYSE:TMUS), which was rejected by Deutsche Telekom AG (ADR) (OTCMKTS:DTEGY) considering it a lower bid for the fourth-largest U.S. telecom carrier.
This article has been written by Prakash Pandey.
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