Iliad’s offer to buy larger stake in T- Mobile has been rejected by Deutsche Telekom.
French telecom giant Iliad has dropped its plans to acquire Deutsche Telekom’s US subsidiary.
The announcement marked the end of four month pursuit, where Iliad increased the number of shares from 56.6% to 67% to acquire T-Mobile for $36 per share, $3 more than what it initially offered back in June.
Iliad announced that board members of T-Mobile US and Deutsche Telekom have refused to accept Iliad’s new offer, despite increasing the size of stake buy proposal and offer price.
The company also said that in order to finance the deal it had raised funds from banks and private-equity funds but the offer reportedly could not impress Deutsche Telekom.
Iliad wanted to expand its presence in North America with the audacious bid.
Iliad said in a statement: "Iliad had the ambition to accelerate T-Mobile US’ transformation, notably by saving more than USD 2 billion of cost annually. This transaction would have created significant value for both Iliad’s and T-Mobile US’ shareholders."
T-Mobile CEO John Legere has reportedly defended the company’s stand-alone prospects competing with other players.
However, Legere is still open to offer from Sprint which has already dropped the merger plan due to objections from regulators.