Altice International - Be careful what you wish for

Management tries to distinguish between Altice International and Altice SFR, but investors remain sceptical. Our analysis further explores the topical use of proceeds questions and options available to the Company. Building on this topic, we highlight some peculiarities which raise the pertinent question - are asset sales in the interest of creditors? With the sales process for Portugal ending without any agreement, we explore what infrastructure assets could be sold and the implications for creditors.

We have updated our model for the recent Q2 results, confirming our underlying view, but we are aware trading levels are more dominated by shareholder concerns than operational issues. Depending on which, if any, asset sales occur, we focus our attention on the legal constraints and scenario analysis.