T-Mobile Could Attract Suitors Again, Deutsche Telekom Says (1)
2014-11-19 18:48:54.291 GMT
(Updates with share reaction in sixth paragraph.)
By Cornelius Rahn
Nov. 19 (Bloomberg) -- T-Mobile US Inc., the wireless
carrier that drew unsuccessful bids from Sprint Corp. and Iliad
SA this year, remains an attractive asset for other potential
suitors, according to its owner Deutsche Telekom AG.
Companies that could seek to control the fourth-largest
U.S. mobile-phone company include Comcast Corp., America Movil
SAB and Dish Network Corp., Deutsche Telekom Chief Executive
Officer Timotheus Hoettges said in an interview in Barcelona.
The German carrier isn’t talking to the companies, he said.
Japanese billionaire Masayoshi Son, who controls Sprint
through SoftBank Corp., could also revive an attempt to
strengthen his position in the U.S., Hoettges said. Providers of
software and other services over the Internet may also look for
network infrastructure in the U.S., he said.
“Does that mean that we have to do a fast sale or
something like that? Not at all,” Hoettges, 52, said today
during an investor conference organized by Morgan Stanley.
“It’s a growth stock at this point in time and there are
optionalities in the market.”
T-Mobile shares have held up since Iliad founder Xavier
Niel’s pursuit was snubbed last month for a second time by
Deutsche Telekom, while Sprint has slumped about 20 percent.
Bellevue, Washington-based T-Mobile has raised its forecast for
subscriber additions, while Sprint has announced 2,000 job cuts.
Shares Recover
T-Mobile’s stock pared earlier losses of as much as 3.1
percent after Hoettges’s comment. It traded 1.6 percent lower at
$27.43 as of 1:44 p.m. in New York. Deutsche Telekom rose 0.9
percent to 12.90 euros at the close of trading in Frankfurt.
Comcast’s purchase of Time Warner Cable Inc. for $45.2
billion, and AT&T Inc.’s $48.5 billion takeover of DirecTV will
probably win U.S. regulatory approval, Hoettges said. Such deals
will probably be followed by combinations of fixed and mobile
operators, he said.
There is no need for T-Mobile to enter landline services,
Hoettges said.
Recalling earlier negotiations to sell T-Mobile to Sprint,
Hoettges said the combination -- of the third- and fourth-
largest U.S. wireless carriers to rival Verizon Wireless and
AT&T -- wouldn’t have won regulatory approval.
“That was the idea which we created together with Masa Son
and SoftBank to create really the No. 1 position as we have
created it in the U.K.,” Hoettges said. “This would have
created huge benefits to both parties, better utilization of
infrastructure, better use of spectrum, and even better market
relevance from a coverage perspective. This wasn’t possible from
a regulatory perspective.”
Companies including AT&T, Verizon, T-Mobile and Dish are
now vying for U.S. airwaves in a auction where bids have
exceeded $16 billion and could continue into next month. Dish
Chairman Charlie Ergen has told Deutsche Telekom that he may be
interested in a deal for T-Mobile when the auction is complete,
people familiar with the matter said in September.
For Related News and Information:
Deutsche Telekom Earnings Top Estimates as Europe Recovers
Iliad Abandons T-Mobile Bid After Deutsche Telekom Spurns Offer
Vodafone U.S. Exit Is Cautionary Tale for T-Mobile’s Owner
Top Technology Stories
Top Deals Stories
--With assistance from Scott Moritz in New York.
To contact the reporter on this story:
Cornelius Rahn in Barcelona at +49-30-70010-6212 or
crahn2@bloomberg.net
To contact the editors responsible for this story:
Kenneth Wong at +49-30-70010-6215 or
kwong11@bloomberg.net
Robert Valpuesta
2014-11-19 18:48:54.291 GMT
(Updates with share reaction in sixth paragraph.)
By Cornelius Rahn
Nov. 19 (Bloomberg) -- T-Mobile US Inc., the wireless
carrier that drew unsuccessful bids from Sprint Corp. and Iliad
SA this year, remains an attractive asset for other potential
suitors, according to its owner Deutsche Telekom AG.
Companies that could seek to control the fourth-largest
U.S. mobile-phone company include Comcast Corp., America Movil
SAB and Dish Network Corp., Deutsche Telekom Chief Executive
Officer Timotheus Hoettges said in an interview in Barcelona.
The German carrier isn’t talking to the companies, he said.
Japanese billionaire Masayoshi Son, who controls Sprint
through SoftBank Corp., could also revive an attempt to
strengthen his position in the U.S., Hoettges said. Providers of
software and other services over the Internet may also look for
network infrastructure in the U.S., he said.
“Does that mean that we have to do a fast sale or
something like that? Not at all,” Hoettges, 52, said today
during an investor conference organized by Morgan Stanley.
“It’s a growth stock at this point in time and there are
optionalities in the market.”
T-Mobile shares have held up since Iliad founder Xavier
Niel’s pursuit was snubbed last month for a second time by
Deutsche Telekom, while Sprint has slumped about 20 percent.
Bellevue, Washington-based T-Mobile has raised its forecast for
subscriber additions, while Sprint has announced 2,000 job cuts.
Shares Recover
T-Mobile’s stock pared earlier losses of as much as 3.1
percent after Hoettges’s comment. It traded 1.6 percent lower at
$27.43 as of 1:44 p.m. in New York. Deutsche Telekom rose 0.9
percent to 12.90 euros at the close of trading in Frankfurt.
Comcast’s purchase of Time Warner Cable Inc. for $45.2
billion, and AT&T Inc.’s $48.5 billion takeover of DirecTV will
probably win U.S. regulatory approval, Hoettges said. Such deals
will probably be followed by combinations of fixed and mobile
operators, he said.
There is no need for T-Mobile to enter landline services,
Hoettges said.
Recalling earlier negotiations to sell T-Mobile to Sprint,
Hoettges said the combination -- of the third- and fourth-
largest U.S. wireless carriers to rival Verizon Wireless and
AT&T -- wouldn’t have won regulatory approval.
“That was the idea which we created together with Masa Son
and SoftBank to create really the No. 1 position as we have
created it in the U.K.,” Hoettges said. “This would have
created huge benefits to both parties, better utilization of
infrastructure, better use of spectrum, and even better market
relevance from a coverage perspective. This wasn’t possible from
a regulatory perspective.”
Companies including AT&T, Verizon, T-Mobile and Dish are
now vying for U.S. airwaves in a auction where bids have
exceeded $16 billion and could continue into next month. Dish
Chairman Charlie Ergen has told Deutsche Telekom that he may be
interested in a deal for T-Mobile when the auction is complete,
people familiar with the matter said in September.
For Related News and Information:
Deutsche Telekom Earnings Top Estimates as Europe Recovers
Iliad Abandons T-Mobile Bid After Deutsche Telekom Spurns Offer
Vodafone U.S. Exit Is Cautionary Tale for T-Mobile’s Owner
Top Technology Stories
Top Deals Stories
--With assistance from Scott Moritz in New York.
To contact the reporter on this story:
Cornelius Rahn in Barcelona at +49-30-70010-6212 or
crahn2@bloomberg.net
To contact the editors responsible for this story:
Kenneth Wong at +49-30-70010-6215 or
kwong11@bloomberg.net
Robert Valpuesta