Sprint Reportedly Bowing Out of T-Mobile Bid (was "Sprint offer" and "Iliad" threads)

[ITK79]

This might be what is needed to move Sprint forward. The merger with T-Mobile will not make it by the DOJ since they can keep all 4 carrier's in place with this new offer. Why attempt the merger and hand over $2 billion to a carrier that will continue to be a torn in your side. Softbank should use some of that money to help grow Sprint's coverage area and cover suburban areas that have seen growth.

I was never a fan of the merger and would hate to say they were my cellphone company. The fact that someone else wants them and may not have money for rapid growth is great news.

 

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[MacinJosh]

What does that mean? Hold up for what? It's not like they are in danger of going bankrupt.

 

Robert

I'm sorry. I shouldn't have said that. Just depressing to see the Sprint bashing articles the last few days.

[sbolen]

This gives Masa/SoftBank a very easy 'out' if they want to take it.

[sbolen]

I'm sorry. I shouldn't have said that. Just depressing to see the Sprint bashing articles the last few days.

 

You aren't used to it after 3+ years? 

[MacinJosh]

You aren't used to it after 3+ years?

No, I guess I'm not.

[JimBob]

Iliad is only offering $15 billion in cash for 56.6% of T-Mobile US at $33 a share; no premium at all. I do not see how T-Mobile's board would really want this offer.

 

http://online.wsj.com/articles/frances-iliad-makes-bid-for-t-mobile-us-1406822189

 

And here's a chart for subscriber numbers (not sure if current):

 

[jamisonshaw125]

I'll put 8 billion on 1 please.

Yes. And for a limited time Western Sky Financial offers you the lowest APR ever! At only 500% APR, down from our previous convenient 763% APR, we know you're ready to sign a loan today! 

 

[themuffinman]

This company is worth a fraction of what tmobile is worth, I don't see how they can pull it off unless someone else with lots of bank is pulling the strings behind the scenes.

[modplan]

TMUS halted again, didn't trip a circuit breaker this time. Something is up, this was an intentional halt, which normally happens before news/press release. Should know in the next few minutes.

 

 

Edit: News was TMo pushing out a press release confirming it has received an offer and currently has no further comment.

 

Shares will resume trading shortly.

[Ascertion]

I'm in the fence about them not being bought out by Sprint because of stock reasonings but I do feel Sprint is more than fully capable of gaining some market share soon. Especially with B41 rollout coming online now by Nokia and Samsung.

 

Sent from my LG-LS980

[WiWavelength]

Well, I will come out and say that I am in favor of this Iliad bid for a majority stake in T-Mobile.

 

And since Deutsche Telekom will still retain a minority share, the French and Germans will be working together.  They can just rebrand it to Vichy Mobile.

 

 

AJ

[JeremiahMcCurry]

Oui, monsieur.

 

http://www.fiercewireless.com/story/report-frances-iliad-makes-bid-purchase-t-mobile-us/2014-07-31

 

DT considers the $33-a-share offer as not competitive and inferior to a separate bid planned by Sprint (NYSE: S) parent SoftBank, an unnamed source familiar with the matter told Bloomberg. SoftBank CEO Masayoshi Son is reportedly working on an offer of about $40 a share for T-Mobile in a deal valued at about $32 billion.

 

[bigsnake49]

Well, I will come out and say that I am in favor of this Illiad bid for a majority stake in T-Mobile.

 

And since Deutsche Telekom will still retain a minority share, the French and Germans will be working together.  They can just rebrand it to Vichy Mobile.

 

 

AJ

You just could not resist a dig against the Europeans, eh AJ. Touche!

[GoBigRed79]

Oui, monsieur.

 

http://www.fiercewireless.com/story/report-frances-iliad-makes-bid-purchase-t-mobile-us/2014-07-31

 

This.  No way T-Mobile shareholders would approve a lower price then Sprint is offering unless it was totally clear a T-mobile/Sprint deal could not happen.  And Softbank could outbid them easily if they wanted.  This is not a big threat, IMHO.  

 

For the record, I would rather see a deal with DISH.

[sbolen]

This.  No way T-Mobile shareholders would approve a lower price then Sprint is offering unless it was totally clear a T-mobile/Sprint deal could not happen.  And Softbank could outbid them easily if they wanted.  This is not a big threat, IMHO.  

 

For the record, I would rather see a deal with DISH.

 

Yeah, I don't see how shareholders say "Yeah, let's take less money!"

 

Especially when DT has nothing to lose here -- if they take the SoftBank offer and it falls through, they get the breakup fee and can try, try again.

[JimBob]

Oui, monsieur.

 

http://www.fiercewireless.com/story/report-frances-iliad-makes-bid-purchase-t-mobile-us/2014-07-31

Yes, Iliad needs to sweeten the deal if they expect T-Mobile board and shareholders to consider them. Maybe they are just testing the waters right now.

 

Sprint shares have taken a beating today.

[GoBigRed79]

 

Sprint shares have taken a beating today.

Dow down over 300 and Nasdaq down 89.  S was not the only one taking a beating today.  Obviously the news did not help either.  

[WiWavelength]

You just could not resist a dig against the Europeans, eh AJ. Touche!

 

No, not a specific dig against the Europeans.  It was just a ripe opportunity for some clever, historical humor about French and German "collaborators."

 

AJ

[miguell2]

Turned down apparently by DT.

http://dealbook.nytimes.com/2014/07/31/french-upstart-makes-offer-for-t-mobile-usa/

[JimBob]

Turned down apparently by DT.

 

http://dealbook.nytimes.com/2014/07/31/french-upstart-makes-offer-for-t-mobile-usa/

Good. Now we wait and see if Iliad comes back with a sweeter offer.

[808Bill]

Good. Now we wait and see if Iliad comes back with a sweeter offer.

I'm betting they're going to surrender.

 

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[Mr.Nuke]

I'm betting they're going to surrender.

 

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Seriously though they'll make another offer. This was much like the idiot looking for a deal that makes an initial offer on a house 30% below market value.

[WiWavelength]

I am not a finance guy, but the $33 per share calculation does not seem to tell the whole story.

 

 

The company said it values the remaining 43.4 percent of company at $40.5 per share on the basis of $10 billion of synergies to the benefit of the T-Mobile U.S. shareholders.

 

AJ

[JimBob]

I am not a finance guy, but the $33 per share calculation does not seem to tell the whole story.

 

 

AJ

Yeah. $10 billion offered in "synergies" (instead of cash).

 

[Mr.Nuke]

This.  No way T-Mobile shareholders would approve a lower price then Sprint is offering unless it was totally clear a T-mobile/Sprint deal could not happen.

In fairness, in either the Rising Sun or Froggy proposals, shareholders are pretty much irrelevent. Both Softbank and Iliad are talking about buying portions of DT's controlling stake in the company directly from DT. With DT owning 2/3 of the company, other shareholders are along for the ride.

 

I am not a finance guy, but the $33 per share calculation does not seem to tell the whole story.

 

 

AJ

investment banker funny math to try and make DT's remaining stake in the company look more valuable.