Blackstone (NYSE:BX) may be eyeing its next big move in Europe and it’s coming with telecom muscle. The firm is exploring a potential joint bid for SFR, the French mobile and broadband operator owned by Altice France, in a deal that could be valued as high as 30 billion ($35 billion) including debt. According to people familiar with the matter, Blackstone is holding early talks with possible partners, including SFR’s rivals, and is likely to team up given the operational complexity of the target. No offer is guaranteed, but the discussions point to a growing private equity appetite for core infrastructure as valuations reset and sellers seek debt relief.
This wouldn’t be a one-off bet. Just weeks ago, CEO Steve Schwarzman said Blackstone is planning to deploy up to $500 billion in Europe over the next decade citing stronger visibility and rising defense budgets in the region as tailwinds. Amid uncertainty over the U.S. economic trajectory, Europe may be positioning itself as the more stable playground for big capital. Blackstone is clearly putting boots on the ground: Managing Director Mathieu Cransac and Principal Lukas Denizot are both relocating to Paris to help lead the charge.
For Patrick Drahi’s Altice France, a potential deal could be the next chapter in a years-long debt overhaul. The company recently struck a deal with creditors to cut 8.6 billion of debt around a third of its load while keeping control of SFR. A partial stake sale could help accelerate deleveraging and draw in strategic or financial investors. SFR has already attracted interest from local rivals like Bouygues, Iliad, and Orange, with Middle Eastern buyers also in the mix. Whether Blackstone ends up at the table or not, it’s clear one thing: the bidding war for European telecom assets might just be heating up.
This article first appeared on GuruFocus.
