After entering the US cable market with the purchase of Suddenlink and feinting toward TW Cable, Altice made its next big move this morning — in France. They’ve submitted a bid for the French telecom Bouygues Telecom, which operates the #3 wireless network there.
It’s a combination that has been speculated at in the past, although not getting much press in the US perhaps. But in this case it apparently came out of the blue, as the two were not actually talking. The value of the bid isn’t even public yet, although it’s said to be in the €10B range. The board of Bouygues, a conglomerate which owns other assets in addition to the wireless unit, will be meeting to discuss the bid tomorrow.
Yet hanging over the deal, which isn’t even a deal yet, is the everpresent spectre of regulators. It would take the French mobile market from 4 to 3, boost Altice past Orange in wireless subscribers, and justify itself from the sort of headcount synergies that France tends to disapprove of. And that assumes Bouygues own billionaire protagonist, Martin Bouygues, doesn’t throw his own wrench in the deal.
But to US investors, the bid probably takes Altice and billionaire Patrick Drahi out of the M&A chase in the USA, clearing the way for Charter and John Malone to TW Cable at least in the short term.
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Categories: Mergers and Acquisitions · Wireless
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My guess is that they probably own other assets…..”Bouygues, a conglomerate which owns other asses in addition to the wireless unit”.
Anything else might be a political comment! (Don’t worry Rob, you’re still the best!!!)
Many in telecom are asses. Many in upper management are asses.
🙂
Ok ok, just have fun picking on the guy posting articles from hotel wifi with a dodgy keyboard… 🙂 It wasn’t Freudian, honest!
Any intel on who Mr. Drahi will target next in the states after the Suddenlink deal closes? Perhaps when?
the rumored value of the deal is actually €10B and not €1B
Indeed, I have corrected the typo, thanks!