preparing his long shot, but he had to accelerate its timetable. Society Xavier Niel, Iliad, made a bid to take over T-Mobile U.S., the fourth U.S. telecom operator. "Iliad submitted to the Board of Directors of T-Mobile U.S. an indicative bid for T-Mobile U.S.," said he formalized, following revelations of the Wall Street Journal.
Operation in which embarked Iliad is bold: French is two times smaller than T-Mobile Exchange ($ 16 billion, against 25 billion). In addition, the U.S. operator displays a heavy debt of $ 15 billion. Free achieved last year a turnover of 3.7 billion euros (approximately $ 5 billion), against $ 26 billion for T-Mobile.
Iliad has 15 billion in cash to acquire 56.6% of T-Mobile U.S. $ 33 per share. This enhances T-Mobile 26.7 billion. "The offer will be financed through a combination of debt and equity. Iliad has secured the support of leading international banks for the acquisition debt ", says Iliad. In this operation, Lazard advised Iliad, while BNP, HSBC and a pool of banks would provide funding for the operation. Installation is ready. Iliad conduct a capital increase of € 2 billion into debt and € 4 billion. Then he would bring that amount to a holding that borrow 5 billion euros remaining.
Iliad must now convince the shareholders of T-Mobile, the first of them, Deutsche Telekom, the relevance of its offer. Iliad had discussions with the board of T-Mobile in June, but he also talked with Sprint, the U.S. and number three mobile competitor. However, if the number reaches 3 room number 4, the U.S. market will be permanently locked. Free, eyeing for a long time the world's largest telecoms market, had to launch now. Export the model
How to convince T-Mobile to choose rather than marry Sprint whose bid is higher? Free offers $ 33 cash per share for 56% of the capital, when Sprint offers $ 40 per share for 50% of capital and exchange of securities remaining 50%. An offer of $ 30 billion. But this is a competition problem, because it would strengthen the U.S. market by operators from four to only three. A record shall be handed over to U.S. competition authorities in September, and the test may take time.
Meanwhile, Iliad arrives with an offer less financially but has the advantage of not a problem of concentration no fax payday loan.
Free, champion of the competition between four operators in France, posing in white knight T-Mobile. But to win, he must demonstrate that its offer creates value. Iliad considers that generate 10 billion merger synergies. No cross-border merger has managed to also identify significant savings. In fact, Free offers nothing less than to change the pattern of T-Mobile to make a low-cost operator in the image of Free Mobile.
The U.S. market is very lucrative. Giants, AT & T, Verizon and Sprint, there buxom realize margins close to 50%. Best, average per subscriber bills exceed $ 100, even $ 150 per month for Verizon. Only T-Mobile, as challenger, has launched a price war with a reduced $ 51 per month average bill. So, T-Mobile has won market share. He managed to attract new subscribers than its three competitors combined in the second quarter. T-Mobile had more than 50 million customers, against nearly 53 million Sprint, $ 116 million for AT & T and $ 104 million for Verizon. In contrast, T-Mobile has sacrificed his fallen to 20% margin. Because it is a low-cost operator with loads of traditional operators. Free considers itself able to significantly increase the profitability of T-Mobile. Hence the $ 10 billion of synergies.
"T-Mobile U.S. has successfully established itself in the market by positioning out that in many respects is similar to that of Iliad in France. "
Both operators alike. Moreover, Iliad emphasizes that "T-Mobile U.S. has become successful in this market positioning out that in many respects is similar to the Iliad in France." However, if Free takes over T-Mobile, it would not have the intention to blow the price as it did in France when it was launched in January 2012. In the United States, already accede to a base of 50 million customers. The challenge is to maximize profit. Remains to be seen what reception it will be given by U.S. giant AT & T and Verizon, who have no intention of being jostled.
For Free, the American adventure did not affect the development in France. The operator, who suffered an end of inadmissibility from Bouygues Telecom, continues to expand its network.A potential policy holder should always study their life insurance quotes carefully and all terms contained within them should be properly understood before any final decision is made.