The Law Office of Lynnette Ariathurai A Professional Corporation

T-Mobile flirts with business merger proposals

The global economy is something that many companies are attempting to tap into in order to be exposed to a larger market. This includes companies in California as well as in every other state. One option a company may consider is to initiate a business merger that would help the company reach a more international market. This is what one foreign company attempted to do by looking into a merger with an American company recently.

The company was trying to take over T-Mobile, the large wireless carrier firm. However, there were some issues which arose while attempting to negotiate the proposed business merger project. Iliad, the foreign startup telecommunications firm, had offered to pay $15 billion for majority ownership of T-Mobile, at 56.6 percent. This became an issue because T-Mobile was already in the midst of merger talks with AT&T.

The business merger proposal from Iliad even reportedly had a significant impact on the marketplace for cell phone plans within the company's home country. However, ultimately T-Mobile rejected the foreign company's offer. Shortly afterwards, merger talks with Sprint also fell apart. Business experts had believed that the merger between T-Mobile and Sprint would have created a third rival to AT&T and Verizon Wireless.

As this case illustrates, not every business merger will eventually take place, whether in California or elsewhere. However, for those that do move forward, it is essential to ensure that the merger project complies with applicable laws and regulations. Acceptance from regulating agencies is essential for a potential business merger to be completed. In some cases, legal action may be needed in order to complete the deal.

Source: startribune.com, "Business briefs: Universal plans theme park in Beijing", , Oct. 13, 2014

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