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T-Mobile CFO Says Iliad’s $15 Billion offer for the Company is “Very inadequate”

August 14, 2014 - Written By Alexander Maxham

Well this is no surprise. But we all know that a few weeks ago, Sprint backed out of trying to buy the nation’s fourth largest carrier, T-Mobile USA. Just before that happened, a French Telecom provider Iliad, put in a bid for about $15 billion to buy T-Mobile. Which was a huge difference from the bid that Softbank had in. Softbank was looking to pay about $40 billion for T-Mobile. And that was just for a controlling interest. Well T-Mobile’s CFO, Braxton Carter, was speaking at an investors conference in Boston yesterday, and spoke about Iliad and said that their offer was very inadequate. Which shouldn’t be a surprise. However, Iliad is working with Dish, Comcast and a few other Cable/ISP’s here in the US to sweeten the deal. Carter stated:

“We believe today that we’re undervalued. And we believe that our forward potential is significant.”

Yesterday, was the first time that a T-Mobile executive said anything about Iliad, or really anything about being bought our and merged, period. However, Carter kept it short, and sweet. While there is a chance that Iliad could come up with a better deal, it still may not be feasible for T-Mobile’s future. As they’d spend all their money on buying T-Mobile and wouldn’t be able to invest in magenta’s network, which is their issue right now with Deutsche Telekom. DT hasn’t invested any money in T-Mobile USA in quite some time. Hopefully we’ll see Deutsche Telekom invest in T-Mobile now that they are making money and adding customers left and right, but who knows.

One thing is clear, plenty of carriers want their hands on T-Mobile. First AT&T attempted to buy them, and that fell through, then Sprint, and now Iliad. I wouldn’t be surprised to see Dish attempt to buy T-Mobile in the near future as well.