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France’s Iliad SA has offered $15 billion to buy a majority stake in T-Mobile USA, challenging a rival offer for the fourth largest US carrier from rival Sprint, which is owned by Japan’s Softbank, the company said on Thursday.
Iliad’s surprise offer valued the company at $33 a share, which is substantially less than the $40 per share price offered by Sprint.
However, the Sprint offer is hampered by regulatory hurdles, with US officials considered reluctant to approve a merger between the US’ third and fourth largest carriers that may decrease competition in the market.
Iliad is an upstart French telecom company that has used its extensive network of residential broadband Wi-FI and new wireless technologies to drastically undercut France’s established mobile carriers.
“The US mobile market is large and attractive. T-Mobile US has successfully established a disruptive position, which in many ways, is similar to the one Iliad has built in France,” Iliad officials said in a statement.
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