Altice group's founder, Patrick Drahi, acknowledged management errors in a meeting with the CFDT union on Wednesday, as his telecom empire grapples with a corruption scandal. The issues identified include centralizing procurement and selecting Huawei as a vendor.
A criminal investigation into corruption, money laundering, and tax fraud in Portugal has shaken Altice. This has led to the arrest of Armando Pereira, a close associate of Drahi, and suspensions in France, Portugal, and the US.
Despite the ongoing turmoil, Drahi downplayed Altice's $60 billion debt during a remote address from Tel Aviv. He stated that the debt would not pose a problem until 2027, with only €1.5 billion due in 2025. He also predicted declining rates due to global events and a collapsing luxury goods market.
To tackle growth and reputation issues, Drahi is considering selling a stake in SFR. His goal is to attract more valuable subscribers. Amid current geopolitical tensions, he ruled out increasing his stake in BT Group (LON:BT) Plc.
In addition to these developments, Drahi refused to sell his French media holdings like BFMTV under Altice Media. This is despite facing corruption allegations and conducting internal audits. Senior adviser Dennis Okhuijsen has identified these media holdings as high-value assets for the company.
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