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In a dramatic twist that has shaken Europe’s telecoms market, Altice France announced Wednesday that it has “immediately rejected” a €17 billion ($19.8 billion) joint bid from French rivals Orange, Iliad, and Bouygues Telecom for a controlling stake in its domestic operations.

The move, described internally by Altice CEO Arthur Dreyfuss in an email to staff, comes just hours after the Luxembourg-based telecom group received the proposal on Tuesday evening. Dreyfuss confirmed the company would not entertain the offer but stopped short of detailing the reasons behind the swift rejection.

A Bold Alliance Meets a Firm Wall

The three telecom heavyweights — Orange, Iliad, and Bouygues — had made what they called an “indicative and non-binding” bid valuing Altice’s French operations at €21 billion in total. Their joint statement said the acquisition would supercharge investment in superfast broadband, AI-driven innovation, and cybersecurity, while consolidating France’s telecommunications infrastructure.

Counsel details for the transaction were not disclosed.

Under the terms of the proposed offer, Bouygues Telecom would cover 43% of the cost, Iliad 30%, and Orange 27%. The proposal excluded Altice’s stakes in Intelcia, UltraEdge, XpFibre, and Altice Technical Services, signaling a focus purely on core telecom operations.

“No Certainty This Will Lead to a Deal”

In a joint communiqué late Tuesday, the trio cautioned that there was “no certainty” their proposal would culminate in an agreement, emphasizing that a formal offer would depend on due diligence, Altice’s cooperation, and regulatory approval. Any eventual deal would also need clearance from employee representative bodies in France and the European Commission.

The European Union, long cautious about mergers that could limit competition, has been under renewed pressure to ease its stance. A 2024 report by former ECB President Mario Draghi urged Brussels to treat the EU as a single telecoms market, allowing more cross-border consolidation. Yet, the Commission has resisted significant relaxation, keeping merger ambitions like this one in regulatory limbo.

A Tense Market and an Unmoved Giant

Altice France — the country’s second-largest telecom operator after Orange — has faced mounting scrutiny over its debt and business restructuring. Industry analysts viewed the €17 billion offer as a potential lifeline amid intensifying competition and infrastructure costs.

Instead, Altice’s immediate rejection signals confidence in its strategic independence, even as rivals move to pool resources in the face of escalating investment demands for next-generation networks.

Whether the rejected suitors regroup for a higher bid or regulators shift their position on telecom consolidation, one thing is clear: Altice’s bold refusal has reignited Europe’s battle over the future of connectivity.