Iliad (Free) would like to buy T-Mobile and conquered the US
After disrupting the French Internet and mobile market, Iliad proposes to acquire the American company to get a foot on this new continent.
The French ISP announced on July 31, it has placed a bid of $15 billion on T-Mobile for controlling 56.6% of the company, sold by Deutsche Telekom. It’s seems that, for the moment, Bouygues Telecom is no longer a target. This merger attempted comes after a supposed bid of Sprint, which proposes 40$/stocks instead of 33$ for Free.
In this case Free has strengths but also weaknesses.
The French ISP has a lower value ($16 billion) that his target $25 billion before the bid. Moreover the supposed offer of Sprint would be much higher. After the announcement, Free and all other French telecom companies felt in the stock exchanges.
However Xavier Niel said that huge Banks supported his approach, and it accepted to pass some alliances with other firms for carrying out this deal. The US mobile market knows less competition than in Europe, this is also the reason why Iliad have an advantage compared to Sprint. In fact, the Department of Justice and Federal Communications Commission (FCC) already blocked AT&T’s acquisition of T-Mobile, so again it should be the same with Sprint. Federal regulators could promote the French offer to keep a mobile telecom market with 4 actors, the last one controlled by a foreign company. Tom Wheeler is the current Chairman of the FCC, he says that a mobile market with 4 companies is good for american consumers. (suite…)