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Altice USA shares soar 36% according to report Charter eyes acquisition

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Igor Golovniov | Light flare | Getty Images

Altice United States shares soared 36% on Monday following a report that Charter Communications plans to buy the broadband company.

Charter is working with financial advisors to determine whether it would make sense to purchase Altice USA, Bloomberg reported Mondayciting people with knowledge of the subject.

Altice has not been approached by Charter to begin negotiations on a possible transaction, a person familiar with the matter told CNBC.

Shares of the larger company fell about 2% on Monday.

Charter declined to comment on the report, while Altice USA could not immediately be reached for comment.

The deal would bring significant consolidation at a time when major communications companies are struggling to retain broadband and cable subscribers. Altice USA shares had plunged more than 40% this year before surging Monday, while Charter’s stock fell about 25%.

Altice USA owns brands led by broadband, television and phone company Optimum. The company has around five million customers.

Charter far exceeds its size with 32 million broadband and cable subscribers.

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