DT May Sell Partial T-Mobile US (TMUS) Stake to Iliad - Macquarie

Macquarie analyst Kevin Smithen weighed on T-Mobile US (NYSE: TMUS) after Iliad offered to acquire for DT's 56.6% stake in the company for $15 billion, or $33/share.

Smithen comments that they have long believed that DT would like to deconsolidate T-Mo when its lockup expires in December, although not the entire stake at this price.

"We do not believe that DT would sell its entire control stake for $33/sh, nor would minority investors with tag-along rights likely accept such a price. In our view, DT could sell 10-20% of T-Mo at $33/sh and deconsolidate it, and then both DT and Iliad could be patient for a protracted regulatory review on a Sprint deal," he said. "If a Sprint deal is approved, and synergies realized, Iliad could potentially make a 50% return on its investment over the next two years."

The analyst said the bid likely creates a new floor on TMUS stock at around $32-33 but does not at all rule out a bid by Sprint (NYSE: S) in the near-term.

The firm maintained a Neutral rating and price target of $38 on TMUS.

For an analyst ratings summary and ratings history on T-Mobile US, click here. For more ratings news on T-Mobile US, click here.

Shares of T-Mobile US, closed at $30.94 yesterday.

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