A surprise offer by French telecommunications company Iliad for T-Mobile US has seen Deutsche Telekom's shares climbing sharply amid a market lull. US-based rival bidder Sprint may see its hopes dashed.
Deutsche Telekom shares emerged as the biggest gainer in early Friday trading at the Frankfurt Stock Exchange. The stock value jumped by well over 3 percent shortly after the opening bell against a bearish blue-chip Dax index overall.
The German company's shares were given a major boost by a surprise takeover bid from French telecom firm Iliad for its North American subsidiary, T-Mobile US.
Iliad has shaken up the French mobile and broadband market over the past decade with its cheap subscriber plans and is now setting its sights on expansion, according to market pundits.
Bitter battle ahead?
Iliad on Thursday offered $15 billion (11.2 billion euros) in cash for 56.6 percent of T-Mobile US at $33 per share.
That's less than the roughly $40 per share that rival bidder Sprint from the US agreed to pay under the broad terms of an agreement worked out with Deutsche Telekom .
But despite the lower offer, Iliad is believed to have a strong card to play, because its bid would not face the same anti-trust scrutiny as that of Sprint, in trying to merge the third and fourth-biggest mobile operators in the US.
hg/ng (Reuters, dpa)