Published on: 12th Aug 2012
ｭThe former CEO of Australia’s Telstra, Sol Trujillo is reported to be trying to raise interest in a private equity buyout of T-Mobile USA, although he has been unsuccessful in his talks so far.
Citing people people with knowledge of the matter, Bloomberg News reported that he had held talks with investors about heading a bid for all, or possibly just part of the US phone network. However, private equity groups have reportedly responded with skepticism to the proposed US$30 billion bid.
Deutsche Telekom is presumed to be still interested in a deal to dispose of its US exposure, but a debt-laden private equity bid is would struggle to fund the necessary upgrades and investments that the company needs.
T-Mobile was left slightly adrift after its US$39 billion takeover by AT&T was blocked by the regulators last year and has now embarked on an investment program, partly backed by the radio spectrum AT&T was obliged to hand over in compensation.
Sol Trujillo is an industry veteran, having been the President of US West, CEO of Orange and most recently CEO of Australia’s Telstra, although that last post was marked by controversy and a weak share-price performance.
He was also reported to have held talks about a bid for Sprint Nextel.
On the web: Bloomberg News
Tags: [USA]
