[ILIAD Press Release] Iliad puts an end to its project of acquiring T-Mobile US

 Paris, October 13, 2014

Iliad puts an end to its project of acquiring T-Mobile US

The Iliad Group announces that it puts an end to its project of acquiring T-Mobile US, following exchanges with Deutsche Telekom and selected board members of T-Mobile US who have refused to entertain its new offer.

At the end of July 2014, Iliad confirmed its interest in the US market and that it had submitted to the T-Mobile US board of directors an indicative offer to purchase a 56.6% stake in the company. This offer was rejected by the T-Mobile US board despite the significant premium offered.

Following this offer rejection, Iliad put in place a consortium with two leading private equity funds and Tier-1 international banks allowing it to improve significantly the terms of its offer by enhancing the cash amount and increasing the share of T-Mobile US' capital to be acquired from 56.6% to 67%. This new offer, at about USD 36 per share (cash + share of value creation), would have fitted into Iliad Group's strict financial policy in terms of indebtedness and dilution.

Iliad had the ambition to accelerate T-Mobile US' transformation, notably by saving more than USD 2 billion of cost annually. This transaction would have created significant value for both Iliad's and T-Mobile US' shareholders.

The Iliad Group will continue its profitable growth policy as it has been conducted over the last 15 years in the interest of its subscribers, employees and shareholders.

About Iliad

The Iliad Group is the parent company of Free, the company that invented the Freebox - the first multiservice ADSL box. Free has developed a whole range of innovative products for the broadband market (VoIP, IPTV, flat-rate calling plans to a range of destinations, etc.). Free offers straightforward and innovative services at attractive prices. At the end of 2010, Free released Freebox Revolution, the sixth-generation Freebox, which includes network attached storage (NAS) and a Blu-ray^TM drive. Free was the first operator to offer landline to mobile calls in a box package and the first to include calls to French overseas departements. In January 2012, Free opened up the mobile market with simple, affordable, pay-as-you-go services. Free has over 14.8  million subscribers (over 5.7 million broadband subscribers and over 9 million mobile subscribers (as at June 30, 2014). Iliad was ranked 29th worldwide in the Forbes list of most innovative companies in 2013.