* Altice offers to buy Portuguese assets of Portugal Telecom from Oi for an EV of EUR7bn including EUR800m earn-out if
certain revenue and cash flow targets are reached
* We calculate that Altice’s leverage could reach 4.4x EBITDA in 2015 before synergies as the deal would be financed with
new debt and existing cash
* Proposed deal is in line with Altice’s strategy to focus on in market consolidation; OW(V) rating and EUR53 target price