Netherlands-based multi-country telecoms group Altice is said to be in the early stages of putting together an offer to buy US cable giant Charter Communications, Reuters reports, citing sources familiar with the matter. Altice is working with banks to finance the deal through cash and equity, the source indicated. Altice, which raised a total of USD2.15 billion through an initial public offering (IPO) of its Altice USA unit in June this year, had been expected to target mid-sized cable operators as it seeks to grow its business in the US, and the proposed acquisition of industry giant Charter represents a dramatic scaling up of its ambitions.
As previously reported by TeleGeography’s CommsUpdate, Charter knocked back a takeover approach from mobile operator Sprint last month, prompting the cellco to re-start merger talks with wireless rival T-Mobile US instead. A Charter-Altice tie-up is viewed as a similarly unlikely proposition by industry insiders.