This is the epilogue of long discussions: Deutsche Telekom rejects Iliad’s new offer to buy its T-Mobile US subsidiary. The firm of Xavier Niel had improved his offer to 18 billion dollars in order to buy back all the shares of the German group – or 67% of the capital – at an unchanged price per share of 33 dollars. The initial offer provided for $ 15 billion to acquire 56.6% of the US operator to 50.5 million customers.
While Iliad had planned to use its own funds to the tune of $ 2 billion, to carry out a capital increase and to raise debt, the company then decided to join forces with two venture capital funds and big banks to make a new proposal to Deutsche Telekom. Several media talked about KKR in particular.
“The Iliad group announces that it is ending its T-Mobile US acquisition project after discussions with Deutsche Telekom. (…) Iliad had the ambition to accelerate the transformation of T-Mobile US with in particular the achievement of more than 2 billion dollars in annual cost savings. This transaction would have created a lot of value for the shareholders of Iliad and T-Mobile, ”explains the French company.
Despite everything, “the Iliad group will continue its policy of profitable growth as it has been pursued for 15 years in the interest of its subscribers, employees and shareholders”, we explain.