On Wednesday, Bouygues Telecom announced that it had been informed of Altice Group's decision to reject the non-binding joint offer it had submitted yesterday alongside Orange and Free (Iliad) to acquire a large part of the telecom operator's French activities, mainly consisting of SFR.
The offer, which is worth a total of €17bn in enterprise value for the assets concerned, implies an indicative enterprise value for Altice France as a whole of more than €21bn.
According to Les Echos, however, this figure is far below the €28bn hoped for by Patrick Drahi, the group's founder.
It is likely that Altice France will want to raise this offer, analysts at Oddo BHF said this morning.
However, there is little room for negotiation without another buyer, they added.
According to the brokerage firm, the proposal submitted by Bouygues, Orange, and Free is simply 'an initial offer,' or even a 'basis for discussion' with a view to further negotiations.
The market's reaction to the prospect of concentration in the French telecoms market was generally positive. Orange shares rose by more than 3% and Bouygues shares were up around 7%.
Altice USA, Inc. is a broadband communications and video services provider in the United States, delivering broadband, video, mobile, proprietary content and advertising services to residential and business customers across 21 states through its Optimum brand. The Company has presences primarily in the New York metropolitan area and various markets in the south-central United States through a fiber-rich hybrid-fiber coaxial broadband network and a fiber-to-the-home network. The Company offers news programming and advertising services. It operates a4, an advanced advertising and data business, which provides audience-based, multiscreen advertising solutions to local, regional and national businesses and advertising clients. It offers hyper-local, national, international and business news through its News 12 and i24NEWS networks. It also offers managed services, including hosted private branch exchange, managed Wi-Fi and network security for small and medium-sized business customers.
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