Corruption Allegations Shake Altice

Patrick Drahi, the renowned owner and leader of the telecommunications group Altice, recently addressed investors during Altice International's quarterly results announcement. The billionaire Franco-Israeli businessman spoke out about the corruption allegations that have been surrounding the company. The investigation conducted by the Portuguese tax authorities regarding suspicions of corruption has caused significant pressure for Drahi and his company.

Financial Challenges and Arrests

Altice is currently facing considerable financial challenges, primarily due to its debt of €60 billion ($70 billion) resulting from years of aggressive acquisition strategies. Armando Pereira, a key figure in the company and Drahi's right-hand man, has been arrested in Lisbon on charges of enriching himself through overcharging Altice for services provided by his own companies. Shockingly, none of these payments were reportedly declared to the Portuguese tax authorities.

Dismissals and Positive Results

As a result of the ongoing investigation, several executives have already been dismissed, including Alexandre Fonseca, the chairman of Altice USA and former CEO of Altice Portugal, as well as Yossi Benchetrit, the head of purchasing at Altice USA and Pereira's son-in-law.

Debt Reduction and Future Plans

Drahi emphasized Altice's commitment to reducing its debt and meeting upcoming credit obligations. The company's top priority is to refinance its credit lines maturing in 2026, which may involve selling certain assets. The sale of data centers in Portugal is expected to be finalized in the coming weeks. Drahi will address the French financial community on Tuesday, providing further details about the sale of data centers in the country and potentially discussing the hypothetical scenario of selling Altice France's media division, which includes BFMTV and RMC.

Speculations and Investor Support

Speculations within the French business community are arising regarding whether Drahi will face a similar fate to Jean-Charles Naouri, who will soon hand over the keys to his Casino empire to Czech billionaire Daniel Kretinsky. To address concerns and provide updates on the company's situation, Drahi and Altice's executives plan to meet with investors in London and New York in September. Drahi concluded his statement by expressing gratitude for the support of investors and reminding them of his successful track record in acquiring and building companies throughout his career.

Words of the day

corruption : corruption

investigation : enquête