In a developing story, billionaire Patrick Drahi is rumored to be contemplating the increase of his stake in BT, the leading telecoms operator in the UK. This information comes from unverified sources referenced by This Is Money. Allegedly, Drahi is weighing the possibility of raising his ownership to 29.9%, just shy of making a mandatory takeover offer for the company.
Drahi’s journey with BT started in 2021 when he acquired a 12.1% stake roughly worth £2 billion via Altice UK, a recently established entity at that time. Interestingly, within the span of a year, Altice augmented its stake by 6% to hit 18%. This action triggered a wave of concern within BT, prompting a series of countermeasures to safeguard its operations against a potential takeover. Despite the concerns, Altice maintained that the equity increase was merely an attractive investment option, not a precursor to a potential takeover.
Fast forward to this year, and Drahi increased his stake in BT to 24.5%. However, both Drahi and Altice have continuously stated that taking over BT is not part of their plans. Despite these claims, speculation is rampant regarding this development.
It’s important to mention that any move by Drahi and Altice to increase their BT ownership stakes will attract the attention of the UK government under the National Security & Investment Act. This law enacted earlier in 2022, empowers the UK Business Secretary to veto overseas investments if they potentially threaten national security. Altice previously face a similar investigation after its earlier stake increase, and the government deemed that no intervention was necessary at that time. However, the consequences of a more significant stake remain uncertain.
This development happens amidst other headline news related to Altice. The company’s co-founder and former COO, Armando Pereira, has been recently taken into custody as part of a substantial three-year investigation into corporate corruption. This operation encompassed the arrest of three individuals, approximately 90 premises searched, and confiscation of around €20 million in property.
At present, authorities are interrogating Pereira and others with allegations related to corruption, tax fraud, and money laundering. In response to this, Altice has confirmed its cooperation with the ongoing investigation and has put on hold contracts with around 60 suppliers. It’s also started internal audits. According to insiders, these circumstances could greatly impact the company’s supply chain and affect its future network rollout plans.
Moreover, Yossi Benchetrit, the head of procurement for Altice USA and Pereira’s son-in-law, has also been temporarily removed from his position.
As the telecommunications industry watches these developments closely, we’ll keep you apprised of the latest news and updates.
