Deal: Eutelsat Snubs Takeover Bid From French Tycoon Patrick Drahi
It appears that Patrick Drahi, the French telecoms tycoon, is continuing his acquisition spree around the globe shortly after buying a $3.1bn stake in British carrier BT. But this time, his latest acquisition attempt hit a wall by being rejected.
- Drahi’s latest acquisition attempt is Eutelsat, a French satellite operator listed on the Euronext Paris exchange. It’s among the top five global satellite operators in terms of revenue.
- Eutelsat just confirmed with a press statement that it had received an offer from Drahi but rejected it. Though Drahi’s proposed price tag for Eutelsat wasn’t formally disclosed, a Bloomberg report said it was for 2.8 billion euros ($3.2bn).
- Drahi is known for shrewd dealmaking in the telecoms and cable industries, so it’s not a surprise he pursued acquiring Eutelsat. He built up his telecoms empire primarily with highly-leveraged acquisitions through his Altice corporation, enough to give him a fortune estimated at $9bn by Forbes.
- It’s said that Drahi sought to buy Eutelsat through a personal investment vehicle of his rather than through his Altice corporation. He may want to use Eutelsat as a platform to pursue more deals in the fragmented satellite industry under a new roll-up holding company.
- Eutelsat (EPA: ETL) had a market value of 2.3 billion euros ($2.7bn) before confirming Drahi’s takeover solicitation. Upon confirmation, its stock jumped by nearly 20 percent, giving it a current market value of 2.7 billion euros ($3.1bn).