Altice USA Inc (NYSE:ATUS) gained ground Monday, on word the company’s enhanced hostile takeover bid of Canadian firm Cogeco Communications (TSX:CCA) and Cogeco Inc. (TSX: CGO) was rejected.
Altice USA has also revised its arrangement with the largest long-term shareholder of Cogeco, Rogers Communications Inc. (TSX: RCI.B), to sell all the Canadian assets of Cogeco at an adjusted net price of C$5.2 billion, if its transaction with Cogeco is completed. Upon completion of the overall transaction, Altice USA would own all the U.S. assets (Atlantic Broadband) of Cogeco, and Rogers would own the Canadian assets.
Altice CEO Dexter Goei, said Sunday: "We encourage the Cogeco boards to act in the best interest of all shareholders and stakeholders as they thoughtfully consider this offer, and we respectfully request that the boards engage with us to discuss our proposal."
The aggregate all-cash consideration offered for all of the outstanding shares of CGO and CCA, including those owned by Rogers, was C$11.1 billion ($8.4 billion U.S.). This includes C$5.1 billion ($3.9 billion U.S.) to be paid by Altice USA for the U.S. assets :
Late Sunday night, however, Audem family holding company, which owns both Cogeco and Cogeco Communications , issued a statement saying, "Following the announcement of their first unsolicited proposal, members of the Audet family unanimously reject this further proposal.
"Since this is apparently not registering with Rogers and Altice, we repeat today that this is not a negotiating strategy, but a definitive refusal. We are not interested in selling our shares."
ATUS shares began trading Monday up 34 cents, or 1.2%, to $28.97.
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