According to a report by the Financial Times, T-Mobile US is set to reject Iliad’s audacious $15 billion bid as early as tomorrow. As far as we were aware, DT had already dismissed the offer because it was too low, but seemingly that wasn’t an official rejection.
“T-Mobile US is planning on rejecting Iliad’s $15 billion offer for the carrier because its parent company, Deutsche Telekom views the offer as too low, the Financial Times reported on Tuesday, citing two people with knowledge of the situation.”
It’s no real surprise to read either. Sprint’s offer of $40 per share far outweighs the $33 per share offered by the ambitious French telecoms company. Even if the European bid comes without risk of being rejected by the FCC and DoJ, it’s still worth it for DT from a financial perspective to press on with the offer from SoftBank/Sprint. If that falls through, the $2B break-up fee will go some way to making the Iliad proposal more attractive.