Boston, MA 09/08/2014 (wallstreetpr) – DISH Network Corp (NASDAQ:DISH) is interested in the acquisition of T-Mobile US Inc (NYSE:TMUS) and for the purpose even started initial talks with Deutsche Telekom AG. The proposed deal between T-Mobile and Sprint Corporation (NYSE:S) didn’t materialize, and, therefore, it can be the right time for DISH to approach Deutsche Telecom for a formal offer.
The news
DISH Network Corp (NASDAQ:DISH) has not entered into formal talks with Deutsche Telekom but as per the news, it is interested to acquire about two-third of stake in T-Mobile. It can make a formal offer after auction for wireless airwaves gets completed in the month of November. As of now, Dish has not hired a bank to assess the T-Mobile takeover. However, it is believed that Dish always was interested to get a stake in T-Mobile.
Iliad SA offer
The recent failure of the planned deal between Sprint Corporation (NYSE:S) and T-Mobile has encouraged DISH Network Corp (NASDAQ:DISH) to start a new conversation with Deutsche Telekom. Also, it has convinced Deutsche Telekom for not making any deal with Iliad SA of France before the end of the year. Iliad has offered $15 billion bid to acquire a 56.6% stake in T-Mobile that is rejected by Deutsche Telekom. Iliad is in search of a partner so as to make a high bid offer for acquiring a stake in T-Mobile. Deutsche Telekom has declined to comment on the matter. The spokesman Philipp Schindera said that Deutsche is under no pressure to sell a stake in T-Mobile US Inc (NYSE:TMUS).
Significance of the deal
Deutsche Telekom might find it better to wait for DISH Network Corp (NASDAQ:DISH)’s offer. A stake in T-Mobile is eyed by many companies as its value has appreciated by as much as 24% in last one year. The lower prices and innovative plans to lure customers have worked for T-Mobile US Inc (NYSE:TMUS). The expectations are that T-Mobile will leave behind Sprint in respect of total customers by the end of year 2014.
