Tomahawk, WI 09/02/2014 (Basicsmedia) – French low-cost telecom operator Iliad owned by Billionaire Xavier Niels is planning to make a fresh bid for T-Mobile US Inc. (NYSE:TMUS). Bloomberg is reporting that Iliad might team up with private equity firms as well as sovereign wealth funds to table an improved offer for T-Mobile.

Deutsche Telekom is reportedly willing to enter into negotiations should a bid of $35 a share and above be tabled, slightly above the $33 a share bid that was’ initially rejected. Bloomberg’s Manuel Baigorri believes that after being successful in France, Iliad wants to replicate the same low-cost tariff network in the U.S with the acquisition of T-Mobile US Inc. (NYSE:TMUS).

“$33 per share on the previous offer was a bit of a stretch, $15 Billion, it’s a big deal it’s a bit of a stretch actually investors seem to not like the news today that much because it will be a lot of money on the table, “said Mr. Baigorri.

Despite being a challenging market, Baigorri expects Iliad to be successful in the U.S. Niels also expects T-Mobile to be profitable even with a reduction of prices and costs on its operations in the U.S.

Investors remain skeptical about Iliad increasing its valuation for T-Mobile US Inc. (NYSE:TMUS) based on future Synergies projections. Investors are also concerned about the slow growth that Iliad has been experiencing back at home in France.

“We need to keep in mind that Telekom’s is a capital intensive so he will need to keep up investments over the years even though investments and synergies is always going to be a tricky question when it comes to a deal,” said Mr. Baigorri.

The $33 per share offer looks unlikely to be accepted considering earlier in the year, Deutsche Telekom rejected a bid of $39 a share from Sprint Corporation (NYSE:S). A bid that is to be accepted by Deutsche Telecom will have to match that of Sprint or slightly higher.

Sprint Corporation (NYSE:S) had also faced some opposition from regulators according Baigorri, something that will not happen in the case of Iliad as the merger will not result in any form of competition downsizing in the industry.

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