Altice shares climb after reassurance on finances
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Shares in struggling telecoms company Altice rose over 7 per cent in early trading on Monday following a statement from the group late on Sunday night clarifying its cash and debt position.
The statement, which came in response to “recent market speculation and misinformation,” said that Altice does not have loan exposure that could ramp up in the event of weakness in its shares, and is not preparing to raise cash through an equity or equity-linked issuance.
Altice, whose shares have almost halved in the past few weeks, is attempting to reassure investors who are concerned about the five-times leveraged company’s €51bn debt mountain.
The group confirmed on Monday that its majority shareholder Next Alt, which is 100 per cent owned by Altice founder Patrick Drahi, does not have any margin loan exposure to Altice and has not sold a material number of shares since the initial public offering.
At an investor conference in Barcelona last week Mr Drahi promised an overhaul of the company’s French telecoms business SFR and a shift in strategy away from mergers acquisitions to focus on deleveraging.