Altice USA (ATUS) - Get Report said Wednesday that it has offered to buy Cogeco for about $7.8 billion (C$10.3 billion), while agreeing to sell Cogeco’s Canadian assets to telecom company Rogers Communications Inc. (RCI) - Get Report.
Shares of Altice, the fourth-largest U.S. cable operator, were rising 2.9% to $28.47.
Rogers Communications was climbing 4.8% to $56.95.
Cogeco, which provides its services under the Cogeco Connexion name in Quebec and Ontario, and Atlantic Broadband name in the United States, issued a statement acknowledging receipt of the offer and declining further comment.
Upon completion of the overall transaction, Altice USA would own Atlantic Broadband, currently the ninth-largest cable operator in the U.S.
Toronto-based Rogers Communications confirmed its agreement with Altice to buy Cogeco's Canadian assets for about C$4.9 billion ($3.7 billion), if Altice acquires Cogeco. Rogers is Cogeco's largest long-term shareholder.
Altice USA said it anticipates closing the transactions within six to nine months after signing definitive agreements
Cogeco first entered the U.S. market in 2012 when it bought Atlantic Broadband for $1.36 billion.
All of Cogeco's multiple voting shares are held in a company controlled by Louis Audet, the company's executive chairman, and members of the Audet family, according to Altice.
"We are pleased to present this very attractive offer for Cogeco, and are confident that Mr. Audet and the Cogeco boards will act in the best interest of all shareholders and fairly evaluate this offer," Dexter Goei, Altice USA CEO, said in a statement.
Headquartered in Long Island City, New York, Altice has about 4.9 million residential and business customers and provides communications and video services under Optimum and Suddenlink brand names.
The company also offers local, national, international and business news through its News 12, Cheddar and i24NEWS networks.