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Deutsche Telekom Considers 'Right Price' for T-Mobile Sale

By Josh Long
August 29, 2014 - News

**Editor's Note: Please click here for a recap of the biggest channel-impacting mergers in Q2 2014.**

T-Mobile US Inc.’s majority owner, Deutsche Telekom AG, reportedly has set a number at which it’s willing to negotiate a sale of America’s fourth-largest wireless carrier.

Senior managers of Deutsche Telekom, the German-based company, have put a valuation of at least $35 a share to T-Mobile, a source “with knowledge of the matter," told Bloomberg. The report said the managers discussed a range of $35 to $40 per share during a strategy meeting yesterday in Berlin. Deutsche Telekom, which owns a 67 percent stake in T-Mobile, declined to comment to the news agency.

“While the reasons behind the leak are unclear, it seems likely that the German firm is signaling its willingness to offload the unit – if the price is right," wrote TeleGeography, the market research firm, commenting on Bloomberg’s report.

T-Mobile recently rejected an offer of $33 per share from Iliad, a French mobile company, according to news reports. The French mobile company confirmed last month that it submitted a bid to T-Mobile’s board, offering $15 billion in cash in exchange for a 56.6 percent stake in the company.

Until recently, T-Mobile and Sprint had been in talks to merge but Sprint abandoned the talks  after it became clear that U.S. regulators opposed the deal.

T-Mobile of Bellevue, Washington, has distinguished itself with an “uncarrier" strategy that appeals to consumers and began with the elimination of annual service contracts. The multi-pronged strategy has enabled the company to achieve growth (4.4 million new customers last year) at a time when the American wireless market is saturated.

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