T-Mobile U.S.: Sprint disqualified, Free takes the risk of patience
Faced with the reluctance of the U.S. antitrust authorities, Sprint waives buy T-Mobile U.S..
Now the sole candidate, Free would not hurry up its price, deemed insufficient by the seller Deutsche Telekom.
lI is urgent to wait. Free and its parent company Iliad does not seem eager to improve their offer on the U.S. operator T-Mobile U.S. yesterday after the bombshell of the night: then he coveted for months the U.S. subsidiary of Deutsche Telekom, on sale since 2011, Sprint, the third U.S. operator, owned by Japan's Softbank, has finally decided to throw in the towel. Too complicated from the point of view of antitrust rules.
Xavier Niel and his men, it is already a first victory. It remains today the only buyer in the running, with its formal 15 billion unveiled last week offer. "It was naive to think it was intended to compete with Sprint offers. He played the card the only alternative ", decrypts an analyst.
From the outset, Free relied on a red light from U.S. regulators to a merger between Sprint and T-Mobile U.S.. Winning bet. The chairman of the Federal Communications Commission ( FCC ), Tom Wheeler, yesterday confirmed its position, welcoming the withdrawal of Sprint and repeating his preference for a market with four operators, "good for American consumers."
Free a beautiful stand alone in the running, however, it is still far from having folded the case. Reportedly, Deutsche Telekom had not acknowledged Wednesday afternoon, the French proposal. Side Iliad, therefore, nothing to pack. Especially since the German group really tiquerait the amount proposed by Iliad, and was about to reject the offer of French. Deutsche Telekom could be tempted to raise the stakes with Free. Or simply choose to continue his American journey solo. Which would demand some investments to reposition T-Mobile U.S. for good with its competitors, Verizon and ATT mastodons.
Wait and see
Free in, it seems we do not want to improve the offer for the moment, even take the risk of the emergence of new competitors. "From a tactical point of view, it is not in our interest to do ... especially now that Sprint has withdrawn," said a source familiar with the matter. Especially on the bottom, Iliad considers making a correct proposition by offering $ 33 per share - and even 36 dollars, integrating synergies announced. A premium of 42% over the price of the end of 2013, before the first rumors of a merger with Sprint.
Similarly, a source close to Free, contacted yesterday after removing Sprint, assured Iliad was not looking for partners to help improve its offer. Xavier Niel had yet opened the door to such partners on Friday night in an interview with the "Wall Street Journal". And Reuters Tuesday evoked discussions between Iliad and operators U.S. cable or satellite (Dish Networks, Cox Communications and Charter Communications), or funds like Ontario Teachers Pension Plan or the Singapore GIC.
"Iliad can find investment companies concerned, but it may be more complicated with local industrial partners cable or satellite, an analyst estimated yesterday. From the point of view of governance and capital participation, to partner with a company like Iliad, it will likely follow a very aggressive strategy is not obvious at all. " He added: "Let Iliad find partners within one or two months, the case is closed."
Iliad sticking to its position, it is Deutsche Telekom could now have in hand. The German operator presents its interim results this morning. A priori, the Americas should be on the agenda.