The Chief Financial Officer of T-Mobile U.S. Inc. said yesterday at an investor conference in Boston that the company considers the majority stake acquisition bid of Iliad SA was too low, as it did not take into account T-Mobiles prospects of growth.
T-Mobile U.S. Inc.s Chief Financial Officer Mr. Braxton Carter called the $15 billion offer of Iliad SA “very inadequate”. The CFO of T-Mobile, which is currently the fourth biggest carrier by subscribers on the territory of the U.S. explained that the offer of Iliad over the acquisition of a 57% stake in his company was “very flattering”, but still “a very inadequate value proposition”.
As reported by Bloomberg, he commented on the bid at an investor conference in Boston and said: “We believe today that we’re undervalued. And we believe that our forward potential is significant.”
Still, T-Mobiles Chief Financial Officer hinted that the U.S.-based company may be open to a more tempting offer. As reported by the Wall Street Journal, Mr. Carter added: “I think rarely people come with their best bid to start.” and called the founder of Iliad SA Mr. Xavier Niel a “very impressive entrepreneur”.
Currently, France-based Iliad SA is the only bidder for the majority stake in T-Mobile U.S. Inc. after Sprint Corp. ended its negotiations over the acquisition of the mobile-phone carrier. In July, Iliad made an offer of $15 billion in cash for almost 57% of T-Mobile. According to a person with knowledge of the process, now the company is trying to find partners to help it finance the offer and allow it to make an improved proposal for a larger stake in the U.S.-based company.
Iliad SA, however, shared that it didnt see a need to increase its offer, especially now when its competitor Sprint Corp. surrendered to the pressure of the regulatory authorities that accompanied its bid.
T-Mobile U.S. Inc. gained as much as 0.69% in New York’s extended trading. The stock was 1.59% down to close at $29.14 per share yesterday, marking a one-year change of +19.43%. The market capitalization of the company, as of yesterday, was $23.52 billion. According to the information published on CNN Money, the 18 analysts offering 12-month price forecasts for T-Mobile US Inc. have a median target of $37.00, with a high estimate of $45.00 and a low estimate of $30.00. The median estimate represents a +26.97% increase from the last price of $29.14.
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