The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor’s attention to Iliad SA.
It is more than likely that Iliad’s negotiations with any of its potential partners will be greatly accelerated following Deutsche Telekom’s indication that is willing to negotiate a sale of its T-Mobile US phone unit, to any suitor that can place a valuation of minimum of $35 per share for the cellular provider, although at this stage the German telecommunications company has yet to receive a new offer with no guarantee that a higher bid will be made in the near future.
“Iliad’s battle for T-Mobile continues after the mild rebuke delivered by Deutsche Telekom to their last offer, more of a defining of requirements rather than a solid no, as we are seeing now with the announcing of expected prices and Iliad seeking partners to potentially match these figures. Deutsche Telekom wants to sell T-Mobile U.S and Iliad and its billionaire owner seem rather anxious to buy, now only a price need be agreed upon,” detailed Martin Blanke Equity Research Specialist at The Avanti Group.
Iliad, the French cellular provider, held a press conference today following the company’s reporting of its first-half earnings at the end of August, announcing that it was meeting with U.S. based buyout firms in addition to other companies as well as sovereign wealth funds. Iliad had earlier offered $33 a share in cash, $15 billion, to obtain a 56.6% holding in the network, but was rebuffed for being too low an offer a month ago. Deutsche Telekom’s senior managers attending a management meeting on the 28th of August decided that an offer of between $35 and $40 per share for the unit was a more realistic range of valuation, one at which the German telecommunications company is willing to agree to a sale.
“The public rebuffing of an offer followed by the seemingly random leaking of expected values has in recent years become almost a default negotiations setting, why it simply isn’t handled in meetings between the parties involved isn’t clear, absent shareholder pressure, but it is now the norm in nearly every industry involving large figure buyouts,” observed Martin Blanke Equity Research Specialist at The Avanti Group.
Iliad has stated that the $10 billion worth of potential savings that it can to be share between itself and T-Mobile give an overall value to its offer for T-Mobile US of $36.2 a share when included. Shares of T-Mobile US closed at $30.08 per share on their last trading day in New York, to give the carrier a valuation of $24.3 billion, while Iliad has a market capitalization of approximately $12.8 billion.
The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.