Smash and grab

16 December 2020 By Christopher Thompson Follow @CGAThompson

The telecoms mogul raised his lowball offer to buy out shareholders in his group Altice to 6.4 bln euros. That has won support from activists including Elliott, avoiding a legal tussle. Still, a final valuation below some peers suggests the gambit has partially succeeded.

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Altice Europe founder Patrick Drahi has raised his cash offer to take the Amsterdam-listed telecommunications company private to 5.35 euros per share from 4.11 euros per share, according to a company statement on Dec 16.

Shareholders including Boussard & Gavaudan, Elliott Management, LB Partners, Lucerne and Sessa have committed to tender their shares under the new proposal.

As a result, the company said that investors will withdraw complaints they had filed at an Amsterdam court to block Drahi’s previous bid.

Drahi, who controls 77.8% of Altice voting rights, offered on Sept. 11 to buy all the shares he does not already own at 4.11 euros each. The company and Drahi’s buyout vehicle, Next Private, said in September that the offer was aimed at reducing share price volatility as well as costs.

Shares in Altice Europe were up 23.3% to 5.32 euros at 0940 GMT on Dec. 16.

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Shareholders including Boussard & Gavaudan, Elliott Management, LB Partners, Lucerne and Sessa have committed to tender their shares under the new proposal.

As a result, the company said that investors will withdraw complaints they had filed at an Amsterdam court to block Drahi’s previous bid.

Shares in Altice Europe were up 23.3% to 5.32 euros at 0940 GMT on Dec. 16.

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