Cablevision Systems Corp. jumped on speculation that an agreement by Europe’s Altice SA to acquire control of Suddenlink Communications may spur more deals in the cable industry.
Cablevision shares rose 17 percent to close at $24.69 on Wednesday, putting the Bethpage, New York-based company’s stock up 20 percent this year.
The $9.1 billion Altice purchase, combined with Cablevision’s increased willingness to sell, makes the chances of another deal more likely, Jeffrey Wlodarczak, an analyst at Pivotal Research Group, said in a note to investors. Pivotal raised its rating for Cablevision, the fifth-biggest U.S. cable company, to buy from hold.
Many analysts anticipate that Charter Communications Inc. might strike a deal with Time Warner Inc. If that happens, Altice could approach Cablevision, Wlodarczak wrote.
Altice has said that it expects to acquire more U.S. assets. The European company has made a takeover approach for Time Warner Cable Inc., a person with knowledge of the matter said.