Altice’s Suddenlink Deal to Raise Cable Valuations, Analysts Say
2015-05-21 07:31:56.884 GMT
By Kasper Viita
(Bloomberg) -- Altice’s acquisition of Suddenlink signals
that U.S. cable M&A is “far from over,” Raymond James says in
note.
* Deal price is likely to keep cable valuations higher, may
challenge Charter’s ability to acquire Time Warner Cable if
Altice is interested as well
* Suddenlink is already well-run, “skeptical” of Altice’s
ability to drive significantly higher Ebitda margins
* U.S. rural markets are price sensitive, may be more
challenging for cost-cutting than Altice believes
* U.S. rural markets are price sensitive, may be more
challenging for cost-cutting than Altice believes</li></ul>
* Goldman (conviction buy on Altice) says Suddenlink deal has
“strong industrial rationale”
* Altice’s ability to create value via its turnaround
capabilities is underestimated
* High US programming costs make restructuring harder than
in Europe, co.’s track record merits benefit of the
doubt
* PT raised to EU160 from EU135 on potential accretion
from deal, scope for further M&A
* PT raised to EU160 from EU135 on potential accretion
from deal, scope for further M&A</li></ul>
* NOTE: Altice agreed to buy U.S. cable operator Suddenlink
yday in $9.1b transaction, Cablevision jumped 17% on
speculation Altice deal will spur sale
* NOTE: Time Warner Cable said to get takeover approach from
Altice
For Related News and Information:
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To contact the reporter on this story:
Kasper Viita in London at +44-203-525-9219 or
kviita1@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net
James Cone
2015-05-21 07:31:56.884 GMT
By Kasper Viita
(Bloomberg) -- Altice’s acquisition of Suddenlink signals
that U.S. cable M&A is “far from over,” Raymond James says in
note.
* Deal price is likely to keep cable valuations higher, may
challenge Charter’s ability to acquire Time Warner Cable if
Altice is interested as well
* Suddenlink is already well-run, “skeptical” of Altice’s
ability to drive significantly higher Ebitda margins
* U.S. rural markets are price sensitive, may be more
challenging for cost-cutting than Altice believes
* U.S. rural markets are price sensitive, may be more
challenging for cost-cutting than Altice believes</li></ul>
* Goldman (conviction buy on Altice) says Suddenlink deal has
“strong industrial rationale”
* Altice’s ability to create value via its turnaround
capabilities is underestimated
* High US programming costs make restructuring harder than
in Europe, co.’s track record merits benefit of the
doubt
* PT raised to EU160 from EU135 on potential accretion
from deal, scope for further M&A
* PT raised to EU160 from EU135 on potential accretion
from deal, scope for further M&A</li></ul>
* NOTE: Altice agreed to buy U.S. cable operator Suddenlink
yday in $9.1b transaction, Cablevision jumped 17% on
speculation Altice deal will spur sale
* NOTE: Time Warner Cable said to get takeover approach from
Altice
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Kasper Viita in London at +44-203-525-9219 or
kviita1@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net
James Cone