What Are Iliad’s Intensions With T-Mobile Bid?

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Aug. 1 (Bloomberg) -- Stephane Beyazian of Raymond James talks with Guy Johnson about Iliad’s $15 billion bid for a stake in T-Mobile. He speaks on “The Pulse.”

It would seem to indicate that the merger arbitrage boys think there is some possibility of this happening.


Yet it is clear that we are still waiting on more details on synergies that they are discussing.

Everybody was expecting iliad not to go to a new country like the u.s. market.

However on paper, it is a deal that could make some sense.

T-mobile is trading on multiples.

U.s. mobile prices are relatively expensive.

Iliad is offering prices which are two to three times lower in the french market.

They are looking at pricing up.

Iliad has acquired 15% market share in two years in france.

What do you think the regulatory opportunity is here?

Clearly this is significantly below where sprint is pitching the offer at.

Sprint is going to have problems.

Sprint is going to take the number of operators from four to three.

Iliad isn't going to do that.

You are right.

T-mobile is doing great in the market.

Even if there is a regulatory hurdle of sprint making this acquisition of t-mobile, they will just wait for one or two years when potentially there is a new u.s. administration in place and more room or m&a action.

We quite rate this offer from iliad as relatively low probability of going through.

Do you think the deal would make sense for iliad at a higher price?

Do you think they can compete on price with sprint?

Would it make sense to close it at $40? i don't think so.

Iliad will basically have a rights issue, plus add 9 billion euros of debt and bring the ratio to levels like five times, which is very high in the sector which is on average two times.

I wouldn't expect iliad to enter a bidding war.

Let's bear in mind that it is another reason for sprint to make a bid on t-mobile.

Thanks to the fact that they have huge synergies emerging on t-mobile.

Also, to potentially avoid a new price war in the u.s. market if iliad is looking to do the same as they did in france.

Is there some sort of plan be here for iliad?

As you say, everybody was expecting them to come salivate the french market.

-- to consolidate the french market.

Being machiavelli in, what do you think is going through his mind right now?

There could be a conspiracy theory regarding iliad's intention in france.

Iliad was in talks with other french telecom operators.

In order to buy bouygues telecom.

Clearly, iliad sending a message to the operators today that, look, you didn't agree on my terms for the acquisition of bouygues telecom.

I am moving on to something else.

You could argue that it is putting a bit more pressure on orange and bouygues to reconsider what iliad's terms were.

I think he is probably a smart guy.

He probably is playing a number of chess games at one time.

Thank you very much indeed.

Watch this story.

I want to bring you back to one of our breaking stories over the last few minutes.

Israeli officials say hamas has broken the cease-fire in gaza.

It was only three hours old.

Let's get straight to elliott gotkine for the latest.

Yes, a rather depressing and shaky start to the cease-fire.

It began some three hours 45 minutes ago.

There was a siren that sounded in israel.

It was after that that there were plumes of smoke coming out from within the gaza strip.

Israel saying that it was hamas had broken the cease-fire and that is what precipitated its retaliation.

There are other reports swirling around, none of which are confirmed.

There are a number of injuries

This text has been automatically generated. It may not be 100% accurate.


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