The Altice Group has rejected a €17 billion takeover offer from three of France’s leading telecommunications operators for its subsidiary, SFR, though discussions are expected to continue in the coming weeks.
The proposed acquisition, led by Orange, Bouygues Telecom, and Free (part of the Iliad Group), sought to purchase most of SFR’s assets in a deal valuing the Altice Group at around €21 billion. If successful, it would have marked one of the largest telecom mergers in French history and a major step toward consolidation in a highly competitive market.
Arthur Dreyfuss, Chief Executive of Altice France, informed employees in an internal message on Wednesday that the offer had been “immediately rejected,” according to French media reports. The decision, reportedly driven by Altice founder Patrick Drahi, came despite growing speculation that the company might sell assets to manage its heavy debt burden.
SFR, France’s second-largest telecom operator, serves about 26 million customers across mobile, broadband, and television services. Its parent company, Altice France, has been under financial strain, with significant restructuring earlier this year transferring a 45% stake in the group to creditors. Drahi, however, continues to hold a controlling 55% share.
Industry observers said the rejection may not be final. “The offer was honourable,” said Nicolas Dufourcq, Chief Executive of Bpifrance, a key shareholder in Orange. “I believe discussions will continue.”
The consortium’s joint proposal outlined a plan to strengthen France’s digital infrastructure, with investments in high-speed networks, cybersecurity, and emerging technologies. The deal would have divided SFR’s assets between the three companies: 43% for Bouygues Telecom, 30% for Free-Iliad, and 27% for Orange.
The consortium also stressed that the merger would help “consolidate control over strategic infrastructure in France,” ensuring domestic resilience amid growing global competition in telecoms and data services.
Investor reactions were mixed. Shares of Orange and Bouygues rose following news of the bid on Tuesday, though Bouygues slipped slightly by 0.8% on Thursday. Free-Iliad is privately owned and not listed on the stock exchange.
Despite Drahi’s firm rejection, analysts believe the financial pressures facing Altice could eventually push the group back to the negotiating table. Altice’s debt, accumulated through years of aggressive acquisitions, remains a pressing challenge as interest rates rise and refinancing options narrow.
In a joint statement, the three telecom groups said they had “taken note” of Altice’s decision but would “maintain” their offer. They expressed their readiness to “engage in constructive dialogue with the Altice Group and its shareholders” to explore ways to move the project forward.
