Deutsche Telekom AG is said to be considering to sell off its T-Mobile stake for $35 per share. This is contrary to an earlier Bloomberg report that first said Deutsche Telekom will only agree if the share is $35 and more per share.
Earlier this August too, Deutsche Telekom rejected a surprise offer from Iliad SA of $33 per share. The French company Iliad confirmed it offered the German-based telecom company a $15 billion bid. No official comment from Iliad and T-Mobile has been heard regarding this matter.
Third-largest US wireless carrier Sprint was also reported to have walked away from the $40/share bid for T-Mobile. This was after regulators warned they want to keep the four major carriers in the market in the United States. T-Mobile is included as top four. Another reason could also be Sprint's switching of CEOs earlier this August too. Sprint's new CEO Marcelo Claure seems to be following T-Mobile by introducing new campaigns and similar promos in the hope of getting more customers.
Meanwhile, shares of T-Mobile were up 1.36 percent. On the New York Stock Exchange, share costs $29.84. Midday Friday, it's up at 2 percent ($30.04).
T-Mobile is Deutsche Telekom's international mobile telephone division. About a third of DT's sales are from T-Mobile and 20 percent of profit comes from the United States.
T-Mobile is doing well but Deutsche Telekom is not satisfied and not confident it can compete with Verizon and AT&T, two of the largest mobile carriers in the United States. However, over the past years, T-Mobile gained new subscribers through new campaigns, price cuts, and restructuring of price plans. In fact, T-Mobile beat the competitors only last quarter with getting more postpaid subscribers. It recently gained more subscribers under the leadership of CEO John Legere. Legere started to offer aggressive pricing plans to win new customers.
German carrier Deutsche Telekom wants to sell its T-Mobile ownership so it can work on its major businesses in Europe. Its senior managers had a meeting last Thursday in Berlin to discuss the valuation of T-Mobile at an official strategy meeting.
