Iliad to announce improved bid for T-Mobile acquisition

Iliad to announce improved bid for T-Mobile acquisition

Xavier Niel, founder of French broadband Internet provider Iliad, speaks during a news conference to launch Iliad long-awaited mobile service in Paris

After its initial offer was refused by parent company Deutsche Telekom, Xavier Niel & ISP Free are set to announce a renewed offer that could value US telecom company T-Mobile’s shares at 10% higher than the previous offer, up from $33/share to $36/share. That new offer is set to be announced at a press conference today, according to Bloomberg.

Iliad’s acquisition of T-Mobile is ambitious, but the synergies between the two, which Iliad says could save as much as $10 Billion, are undeniable. Both position themselves as the low-cost player in their market, and both are 4th largest in their market – Free Mobile just announced that it had surpassed 9 Million subscribers last month.

Deutsche Telekom has alluded to being open to a new offer, after it rejected Iliad’s initial offer, stating that it would only accept an offer that surpasses what they are able to do organically internally. Despite this, T-Mobile’s stock is sitting still at $30/share, suggesting that Wall Street is skeptical of the Germany parent company’s claim.