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STC is accelerating the race for Altice Portugal to try to ally with Telefónica

STC is accelerating the race for Altice Portugal to try to ally with Telefónica

The Riyadh Group considers the telecom company, which owns the Meo brand and the assets of the former Portuguese telecom company, particularly attractive because of the potential to “explore or enhance” synergies in the Iberian Peninsula, El Economista writes.

In recent weeks, Saudi Telecom Company (STC) has accelerated preparations for the purchase of Altice Portugal. The newspaper reported on Tuesday that the Arab company's goal is to expand its area of ​​influence in the European market.The Economist“, citing sources familiar with the Southern Transitional Council's plan.

The group finds the telecom company, which owns the Meo brand and the assets of the former Portugal Telecom, particularly attractive because of the potential to “explore or enhance” synergies in the Iberian Peninsula, in particular with Telefónica.

The Spanish publication reveals that STC intends to create an Iberian consortium where the potential assets of Altice Portugal – valued at more than eight billion euros – converge with those of Telefónica, the operator in which the Riyadh multinational also holds a 4.9% stake. 5% of the capital in the form of financial derivatives until they are converted into securities with political rights.

However, as the same morning newspaper says, STC's race to Altice Portugal is a kind of “test of obstacles”, since there is strong competition in this potential business, including the Warburg Pincus fund, in alliance with Zeno Partners and António Horta -Osório.

At the end of last month, it also became known that North American telecom operator Charter Communications is evaluating the acquisition of broadband service provider Altice USA. The market action even sent Altice's US shares rising 35.52% to $2.48 on Wall Street.

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