Iliad Telecom confirms bid for US T-Mobile

Following various press reports, French multi-play provider Iliad Telecom, which operates in France under the Free brand, has confirmed that it has submitted an offer to acquire a majority stake in US mobile operator T-Mobile US.

Iliad is proposing to buy 56.6% of the operator for US$15 billion, representing a price of US$33 a share. The company said it has valued the remaining 53.4%  at US$40.50 a share based on US$10 billion of synergies.

Iliad said it would finance its bid through a combination of debt and shares and that it has secured bank support to raise the debt. The company proposes to offer about US$2 billion in its own shares, with chairman Xavier Neil participating in the capital increase.

Iliad said it did not envisage any regulatory concerns as it does not currently have a presence in the US.

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