Shares of Altice USA Inc. were spiking in Thursday afternoon trading after Bloomberg News reported that the company was looking into a sale of its Suddenlink cable business, which operates in states including Arizona, California, and Texas. The business could sell for up to $20 billion, according to the report, though it is not determined yet whether Altice will proceed with a deal. An Altice spokesperson said the company doesn’t comment on rumors. The stock was up 22% in Thursday trading. “Our prior advice was don’t be short given the potential for the deal,” Wells Fargo analyst Steven Cahall wrote in a note to clients following the report. “Now it seems like the shares could go meaningfully higher, though the risk is consummation of a deal at or around the reported EV [enterprise value].” Altice shares have lost two thirds of their value over the past 12 months as the S&P 500 has dropped about 9%.
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