Iliad scraps bid for T-Mobile U.S. stake after increasing offer
Iliad SA has scrapped its plan to buy a majority stake in T-Mobile US Inc. after the U.S. mobile- phone operator's owner Deutsche Telekom AG refused to entertain a new bid.
The French mobile-phone carrier founded by Xavier Niel said it had put together a new offer of $36 a share for 67 percent of T-Mobile, according to a statement today. Iliad had previously offered $33 a share for a 56.6 percent stake in July.
Deutsche Telekom, which owns just over 66 percent of T- Mobile, has long wanted to exit the investment in the U.S. subsidiary. The unraveling of the Iliad proposal is at least the third failed sale attempt in recent years after holding talks for T-Mobile with both Sprint Corp. and announcing a deal with AT&T Inc. that was later called off.
Iliad said it will now continue its "profitable growth policy."
T-Mobile fell 2.8 percent to $26.85 at the 1:23 p.m. New York time. Iliad dropped 1.8 percent to 156.15 euros today at the close in Paris.
To contact the reporter on this story: Sarah Rabil in New York at srabilbloomberg.net To contact the editors responsible for this story: Sarah Rabil at srabilbloomberg.net Niamh Ring