T-Mobile US Inc (NYSE:TMUS) just recently received a $15 billion bid for over half of the company from Iliad SA, a relatively small French telecommunications company. Why would Iliad SA be interested in buying over half of the relatively leviathan U.S. carrier? This was discussed by Stephane Beyazian in a recent interview on Bloomberg’s The Pulse.

Guy Johnson told the European telecommunications analyst from Raymond James Financial, Inc. that given the stock of Iliad SA (EPA:ILD) traded down after it revealed its intention to buy 56.6% of T-Mobile US Inc (NYSE:TMUS), there seems to be expectation in the European markets that this deal may go through.

Beyazian said, however, that the more overarching sentiment over the announcement is surprise. He said that people in the region are still waiting on Iliad SA to announce more details about its bid including synergies with T-Mobile US Inc (NYSE:TMUS) that will make the deal rational. He said that everyone was expecting the company to consolidate the French market instead of going after another company in another country.

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However, the analyst did say that the U.S. market may make sense for the French company because the country has relatively higher rates charged to customers. Furthermore, he said that T-Mobile US Inc (NYSE:TMUS) is trading at fairly attractive valuation multiples.

Nonetheless, he did say that shareholders of the U.S. company may not be interested in selling at what is being offered by the French operator. He said that the U.S. carrier is doing better and will likely seek a bigger bid, if they are interested.

Meanwhile, the bid for T-Mobile US Inc (NYSE:TMUS) may also only be a ploy of Iliad SA’s chief to demonstrate that after failing in a deal with Bouygues S.A., he and his company have moved on, Beyazian said.


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