Update: French telecom provider Iliad SA has confirmed that it is offering to acquire 56.6% of T-Mobile US Inc. (NYSE: TMUS) for $15 billion, or $33 a share. Iliad values the remaining 43.4% of T-Mobile at $40.50 per share on the basis of $10 billion in synergies following the acquisition. Sprint Corp. (NYSE: S) now has a competitor for T-Mobile’s affections.
Shortly before noon Thursday, trading was halted for about five minutes in shares of both T-Mobile US Inc. (NYSE: TMUS) and Sprint Corp. (NYSE: S). The two have been linked in merger talks, but the halt was due to volatility in trading, and CNBC is reporting that France’s Iliad has made an offer to acquire T-Mobile.
Iliad trades in Paris and has a market cap of about €12 billion. The company tried to cut a deal with another French telecom provider, Bouygues Telecom, a division of construction giant Bouygues S.A., in June, but that deal fell apart on a price gap of about €3 billion, with Iliad offering between €4 billion and €5 billion, and Bouygues seeking €7 billion or €8 billion.
T-Mobile and Sprint have reportedly agreed on most of the details of a proposed buyout: a total price of $32 billion for T-Mobile (about $40 a share), a $2 billion breakup fee, $45 billion in financing and the promotion of T-Mobile’s CEO John Legere to the top job at the merged company.
It seems unlikely that Iliad can match that offer, but details are not available yet.
Sprint shares fell more than 6% on the report, while T-Mobile’s rose by a similar amount.
ALSO READ: T-Mobile Earnings Good Enough to Raise the Price Sprint Will Pay?
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
