Navigate this market better. Subscribe for FREE stock alerts and information.

Monday, October 13, 2014

France's Iliad drops plan to purchase T-Mobile US, (NYSE: TMUS)

French low-cost telecoms operator Iliad SA abandoned its attempt to purchase T-Mobile US Inc on Monday because of resistance from majority owner Deutsche Telekom, becoming the third bidder to walk away from the carrier in three years.While Iliad's approach had been widely perceived as a long shot, its formal withdrawal sent shares of the U.S. carrier to a 10-month low. The move came three months after Sprint Corp dropped its own bid to buy T-Mobile.Now T-Mobile, which had been gaining market share thanks to aggressive marketing tactics, will face new questions about whether it can continue to prosper as an independent entity."There haven't been any other viable offers that have emerged since Sprint backed out, and that was not a formal offer to boot. There may be some questions about the price a larger buyer is prepared to pay in turn for a regulatory battle they may have to face," said Bill Menezes, an analyst at Gartner.

Shares of TMUS fell by 2.5% or $-0.69/share to $26.92. In the past year, the shares have traded as low as $24.90 and as high as $35.50. On average, 5030630 shares of TMUS exchange hands on a given day and today's volume is recorded at 10147707.