Altice SFR France - comment

Altice have already rejected the offer. We were initially sceptical when rumours circulated over the summer regarding a potential bid for Altice SFR. However, yesterday Bouygues Telecom, Free-Iliad Group and Orange submitted a joint non-binding proposal to acquire a significant portion of Altice’s operations in France. The offer implies an EV of €17bn for the relevant Altice assets in France, with the accompanying press release indicating an estimated EV of approximately €4bn for the remainder of the Group.

The fact that this statement has been made public by the three parties suggests a degree of seriousness behind the proposal. Some investors may be disappointed that this is a consortium bid, rather than a competitive process among the incumbent operators. Nonetheless, this formal offer, which remains subject to standard terms and conditions, is likely to prompt any other potential bidders to come forward.