T-Mobile USA Said To Be Target Of Trujillo Buyout Attempt

Apparently, former telecommunications executive Sol Trujillo is trying to drum up interest in a buyout of Deutsche Telekom’s T-Mobile USA unit and has so far been unsuccessful in pitching a deal to private-equity firms including Blackstone Group and KKR & Co.

The former head of phone companies U.S. West Communications, Orange SA and Australia’s Telstra has approached the firms about bidding for all or part of T-Mobile USA, the country’s fourth-largest wireless carrier. The private-equity firms that have held preliminary discussions with Trujillo have reacted with skepticism to the proposal due to its size and cost of financing, the people said. The unit may now be worth $30 billion, with its mobile-phone frequencies the most valuable element, said Atlantic Equities analyst Christopher Watts.