T-Mobile iPhone launch line

It appears that Sprint may have some new competition in the T-Mobile suitors club. The Wall Street Journal is reporting that French telecom Iliad has offered to buy T-Mobile U.S., putting in a bid of $15 billion cash for a majority 56.6% stake in the carrier.

Like T-Mobile in the United States, Iliad is the fourth largest wireless provider in France. Founded by billionaire French entrepreneur Xavier Niel, the company has climbed its way to the top by offering better pricing and customer service than the competition…

Here’s more from The Journal’s Ruth Bender:

The slow-moving mating dance between Sprint Corp. S -5.28% and T-Mobile US Inc. TMUS +6.46% got a jolt Thursday, when France’s Iliad SA ILD.FR -5.58% made a buyout offer of its own for T-Mobile US, setting up a clash between two of the global telecommunications industry’s brashest titans. […]

“The U.S. mobile market is large and attractive,” Iliad said in confirming a report on its bid by The Wall Street Journal. “T-Mobile US has successfully established a disruptive position, which in many ways, is similar to the one Iliad has built in France,” said Iliad, which is known for sparking a price war in the country’s mobile-telephone market.

While it can’t offer as much money as Sprint, Iliad is looking to exploit a vulnerability in its negotiations with T-Mobile. Because of its size and location, it says its bid is likely to see far less regulatory pushback—something that could interest owner Deutsch Telekom.

The logo of French low-cost telecoms provider Iliad is pictured during the company 2013 annual results presentation in Paris

It’s been an interesting couple of years for T-Mobile, who arose from the ashes of a broken AT&T merger and began a remarkable turnaround under new CEO John Legere. Legere has made quite the name for himself, and his company, with his ‘Uncarrier’ initiative.

Despite its success, however, it’s pretty clear that Deutsch Telekom is looking for a way out of the US wireless game. It doesn’t sound like they’re taking Iliad’s offer too seriously, but it still puts pressure on Sprint and other potential suitors to speed up their time tables.

  • Yujin

    15 billion is too low. Maybe add 30 billion so they can take them seriously.

    • Antzboogie

      Please don’t t let Sprint buy T-Mobile!!

    • Mike Colacone Saal

      Why? The market share for them is only 26 billion and they’re only looking to buy 56% that’s more than that stock is worth

  • elrocc

    T-mobile is a good brand hopefully they strive to keep their name clean from the worst cellular company in the game next to Kricket (or however they’re splellig it these days.). Sprint is a sham they attempt to lure you in with their unlimited data that is potentially the slowest and the two months Inused the network I was plagued with dropped calls and incorrect bills. DONT DO IT T-MOBILE

    • Rigs101

      Exact same thing happened to me I was happy to cancel that contract and luckily I got verizon a month before they stopped unlimited data

      • elrocc

        Wish I had the same luck haha

  • Bobdole

    “the company has climbed its way to the top by offering better pricing and customer service than the competition…”

    For the pricing it’s true… for the customer service you couldn’t be so far away from th truth…

    But it’s true, that now in France, thanks to Free (iliad) you have unlimited calls and texts plus 5gigs of data on 4g network for 20 euros per months and contract free…

  • Rowan09

    It makes no sense to make Sprint or SoftBank buy T-mobile when they blocked the AT&T trade in regards to competition. Sprint is horrible and if they do to t-mobile what they did to Nextel I don’t know which company I will switch to.