French upstart telecom operator Iliad said Thursday it has bid for a controlling stake in US carrier T-Mobile, offering an alternative to a potential tie-up with rival Sprint.
Iliad said in a statement it proposed $15 billion for 56.6 percent of T-Mobile, which is controlled by Germany's Deutsche Telekom and is the fourth largest US wireless group.
The offer was described as 42 percent over what T-Mobile's price had been before reports of a potential Sprint tie-up began circulating.
Iliad, still majority owned by French Internet pioneer and the firm's founder and former CEO Xavier Niel, carved out a major slice of the French home telecoms market through innovative offers and aggressive pricing. It was awarded a mobile phone licence in 2009.
Iliad said a deal with T-Mobile is a good fit because both firms have been "disruptive" by offering lower prices and new services to challenge major rivals.
"The US mobile market is large and attractive," said the statement by Iliad, which operates the growing Free telecom service in France.
"T-Mobile US has successfully established a disruptive position, which in many ways, is similar to the one Iliad has built in France."
The statement said that a tie-up with the French group "should not raise any antitrust issue in light of the competition rules given that Iliad is not present in the United States."
A deal for Sprint and T-Mobile to merge has been brewing for months, with one report saying terms valuing T-Mobile at more than $30 billion were being hammered out.
Sprint, the number three US carrier which is controlled by Japan's SoftBank, has made it known that it wants T-Mobile to challenge the top two operators, Verizon and T-Mobile.
T-Mobile has not publicly indicated any interest in being bought, although some reports indicate that Deutsche Telekom, which owns a controlling stake, would like to cash out.
Iliad said it would finance the deal "via a combination of debt and equity" and that it "has the support of leading international banks for the acquisition debt."
T-Mobile US shares were up more than five percent to $32.60 on the news.
Earlier Thursday, T-Mobile announced that its revenue in the second quarter was up eight percent from the same period last year, and that it had gained about 1.5 million subscribers.
T-Mobile posted a profit in the past quarter of $391 million, rebounding from a loss a year earlier.
"We have completely reversed T-Mobile's trajectory and started a revolution that is changing the rules in wireless," said T-Mobile chief executive John Legere.
"Now, with more than 50 million customers, 1.5 million customers added this quarter and five quarters in a row of over one million net new customers -- we are proud to be the fastest growing wireless company in America."
Last year, T-Mobile acquired smaller rival MetroPCS, which expanded its footprint and boosted its prepaid customers.
Date created : 2014-07-31