Iliad shares plummet following bid for T-Mobile US

T-mobile in New York T-Mobile US is the American arm of the German wireless network operator

Shares in French start-up company Iliad have seen a fall of 13%, their biggest drop in eight years, after the firm made a bid for T-Mobile US.

On Thursday, Iliad made a cash offer of $15bn for 56.6% of the US company.

Before Iliad's bid, T-Mobile US had been expected to conclude a tie-up with US rival Sprint Nextel.

T-Mobile US, controlled by German company Deutsche Telekom, is almost 60% larger than Iliad. Its shares rose 6.5% following the announcement.

Sprint's Japanese parent, SoftBank Corp, and Deutsche Telekom had already loosely agreed to a deal.

Iliad said: "The US mobile market is large and attractive. T-Mobile US has successfully established a disruptive position which, in many ways, is similar to the one Iliad has built in France."

Paul Gallant, an analyst at Guggenheim Securities in Washington, said: "I suspect this [Iliad] deal would get through Washington much easier than the Sprint deal. I don't see any real red flags that would complicate it.

"There don't appear to be any competition issues the way there would be with a Sprint deal. That's the biggest difference and that's significant."

John Bergmeyer, of the consumer group Public Knowledge, said the Iliad deal was favourable because "it wouldn't result in a loss of competition".

Iliad is founded by Xavier Niel, a billionaire French entrepreneur, who is part-owner of the newspaper Le Monde.

More on This Story

More Business stories



  • Afghan interpetersBlacklisted

    The Afghan interpreters left by the US to the mercy of the Taliban

  • Prosperi in the 1994 MdSLost in the desert

    How I drank urine and bat blood to survive in the Sahara

  • photo of patient zero, two year-old Emile OuamounoPatient zero

    Tracking first Ebola victim and and how virus spread

  • Iranian Foreign Minister Mohammed Javad Zarif (left) and chief nuclear negotiator Abbas Araqchi wave to journalists from the Palais Coburg in Vienna (22 November 2014)Waiting game

    Journalists watch as nuclear talks go to the wire

From BBC Capital


  • The challenge is to drop a bottle of water within 100 metres of this dummyClick Watch

    The race to get water – transported by drone – to a man stuck in remote Australia

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.