Drahi's Altice Rejects $20 Billion Joint Offer From Peers -- Update

By Najat Kantouar

France's telecom operator Altice, owned by billionaire Patrick Drahi, rejected a joint nonbinding offer to buy a large part of the company for 17 billion euros ($19.74 billion) submitted by peers Bouygues, Orange and Free-iliad group.

The beleaguered telecom company said Wednesday that it immediately rejected the offer. Both Orange and Bouygues acknowledged Altice's decision to reject the joint offer.

In early afternoon European trading, Orange shares were 3.5% higher at 14.05 euros and Bouygues shares were up 6.90% at 41.33 euros. Year to date, shares in both companies have risen more than 40%.

The three French telecom majors put in a nonbinding offer on Tuesday for most of the assets of Altice's SFR. The deal didn't include SFR's stakes in Intelcia, UltraEdge, XP Fibre nor Altice Technical Services.

Under the deal, Bouygues and Free-iliad would have overseen Altice's business-to-business company, while the three companies would share the business-to-consumer company. Other assets and resources, such as infrastructure and frequencies, would have been shared among all three companies. Bouygues would have taken SFR's mobile network in less densely populated areas, the companies said.

The move raised hopes for consolidation as shares rose in early morning trading. Morgan Stanley analysts wrote in a note last month that French telecommunications companies could look to consolidate, given that the country ranks among Europe's most competitive telecoms markets.

Write to Najat Kantouar at [e-mail]

(END) Dow Jones Newswires

10-15-25 0720ET