Altice to Acquire Cablevision for $17.7 Billion

Nigel Thomas
17 Sep, 2015
New York City

France-based Altice agreed to acquire the U.S.-based Cablevision for $17.7 billion to become the fifth largest cable company in a fast consolidating U.S. market. Premier Farnell net plunged 15% while revenues jumped 4%. Rotork declined on weak fiscal revenues outlook.

[R]4:00 PM Frankfurt – France-based Altice agreed to acquire the U.S.-based Cablevision for $17.7 billion to become the fifth largest cable company in a fast consolidating U.S. market. Premier Farnell net plunged 15% while revenues jumped 4%. Rotork declined on weak fiscal revenues outlook.[/R]

In London trading, FTSE 100 index slipped 29.03 or 0.5% to 6,201.05 and in Frankfurt the DAX index gained 10.66 to 10,239.78.

In Paris, CAC 40 index rose 14.50 or 0.3% to 4,660.34.

Altice S.A., the France-based telecom group was halted at €118.05 after the company agreed to acquire the U.S.-based Cablevision Systems Corporation for about $17.7 billion.

Altice will pay $34.90 per share in an all-cash transaction, a 22% premium to yesterday’s closing price of $28.54.

In May, Altice acquired 70% of the share capital in U.S.-based cable operator Suddenlink for $9.1 billion.

With the purchase of Cablevision, Altice’s U.S. customer base is expected to jump to 3.1 million, fifth largest following Comcast, AT&T Cable, Charter Communications and Cox Communications.

The transaction is expected to close in the first half of 2016 and is expected to face an intense scrutiny of U.S. cable regulatory agency.

Cablevision stock surged 15.5% to $32.97.

Altice in France has poor reputation in customer service and is known to aggressively cut operating costs many a times at the expense of service quality.

However, the company is also know to invest heavily in advanced technology that at times falls short of its promise.

Kier Group Plc slumped 4.8% to 1,405 pence after the U.K.-based residential, construction and services provider reported revenues in the year ending in June soared 14% from a year ago to £3.4 billion.

Net profit in the period plummeted 48.6% from a year ago to £5.5 million compared to £10.7 million but diluted earnings per share jumped to 40 pence from 16.1 pence.

Merlin Entertainments Plc edged up 0.08% to 383 pence after the U.K.-based entertainments company said revenues in the thirty-six weeks ending on September 5 jumped 3.8% and comparable sales rose 0.3%.

The company said operating profit for the year in Resorts Theme Park segment may be lower from the estimated range of £40 million to £50 million and revenues to decline 11.4%.

Premier Farnell Plc tumbled 16.6% to 111.20 pence after the U.K.-based electronic system maker said revenues in the first-half ending on August 2 jumped 4% from a year ago to £498.6 million.

Net profit in the period plunged 14.7% from a year ago to £21.4 million compared to £25.1 million and diluted earnings per share slipped to 5.8 pence from 6.7 pence.

Rotork Plc declined 10.5% to 193.40 pence after the U.K.-based flow control equipment maker forecasted revenue for the year in the range of £530 million to £555 million and operating profit between £120 million and £130 million.