Deutsche Telekom could part with T-Mobile for $35 a share
T-Mobile's majority owner has already rejected one offer from French carrier Iliad and watched its deal with Sprint fall apart.
Deutsche Telekom, the majority owner of T-Mobile, wants to unload its stake in the US wireless carrier. But only at the right price.
The German carrier is willing to negotiate for the sale of T-Mobile if a bid values the company at $35 per share or more, Bloomberg said Thursday, citing unnamed sources. That price isn't substantially higher than last month's offer from French telecom company Iliad to buy a majority stake at $33 a share, which T-Mobile rejected.
The business publication also said senior managers for Germany-based Deutsche Telecom discussed T-Mobile's valuation at a meeting Thursday in Berlin.
T-Mobile and Iliad representatives declined to comment. Representatives for Deutsche Telekom didn't respond to a request for comment.
Deutsche Telekom has eagerly sought to sell off its ownership in T-Mobile so it can focus on its core business in Europe. T-Mobile has begun to turn some heads under CEO John Legere, who's paired aggressive pricing plans with a brash style of salesmanship to win over new customers.
Sprint, the third-largest US wireless carrier by subscriber base, was expected to make an offer for T-Mobile, the fourth-largest, in an effort to better compete with the much larger AT&T and Verizon. Sprint reportedly withdrew its bid and soon after switched CEOs earlier this month in an apparent sign it was changing direction.
Iliad, which made a surprise bid for T-Mobile before Sprint walked from its offer, had confirmed it made a $15 billion bid for a majority of T-Mobile, though the offer was rebuffed. While T-Mobile has regained its momentum, it still faces tough competition. Sprint, under new CEO Marcelo Claure, appears to be following T-Mobile's example, offering some similar promotions to lure more customers.
T-Mobile shares are up 2 percent midday at $30.04.