France’s Iliad Group has announced that it has formally ended its pursuit of T-Mobile US, following exchanges with the US cellco’s owner Deutsche Telekom (DT) and selected board members of T-Mobile US who have ‘refused to entertain’ Iliad’s new offer. At the end of July 2014 Iliad confirmed its interest in the US market and that it had submitted to the T-Mobile US board of directors an indicative offer to purchase a 56.6% stake in the company. This offer was rejected by the T-Mobile US board despite the premium offered.
Following the rejection, Iliad put in place a consortium with ‘two leading private equity funds and Tier-1 international banks’ allowing it to improve significantly the terms of its offer by enhancing the cash amount and increasing the share of T-Mobile US’ capital to be acquired from 56.6% to 67%. However, the new offer fell on deaf ears once again, prompting Iliad to withdraw its offer.
Throughout the process, T-Mobile US’s outspoken CEO John Legere was openly dismissive of his company’s French suitor in the media, proclaiming: ‘I can tell you everything you need to know about Iliad. The owner is wealthy, he has got long hair and he made his money in porn.’