Billionaire Patrick Drahi's Altice Group has bought a 12.1% stake worth about £2.2 billion in Britain's BT Group, becoming its largest shareholder.
Altice announced the holding in a statement today which drove BT's shares to a 17-month high.
Drahi's Altice, whose SFR group is the second largest telecoms operator in France behind Orange, said it had no intention of making a takeover offer for BT, which said it noted Altice's statement of support for its management and strategy.
"Altice holds the board and management team of BT in high regard and is supportive of their strategy," Altice UK, a company formed for the purpose of holding the BT stake, said.
The stake puts Altice ahead of Deutsche Telekom, which owned 12.06% of BT based on recent filings, Refinitiv data shows.
"Altice UK has informed the BT board that it does not intend to make a takeover offer for BT," it added.
BT, Britain's biggest broadband and mobile operator, plans to extend fibre broadband to 25 million homes and businesses by 2026, and it is seeking a partner to help fund the work.
"We welcome all investors who recognise the long-term value of our business and the important role it plays in the UK. We are making good progress in delivering our strategy and plan," BT said in a statement following Altice UK's announcement.
BT is also considering selling a stake in its sports TV operation to help fund its network investments.
Altice's billionaire founder Drahi, who lives between Switzerland, the US and Israel, bought cable company Numericable in the early 2000s, and later acquired SFR from Vivendi. He recently took SFR private in a buyout.
Praised for his financial acumen and bold moves, he suffered a fall from grace in 2017 when Altice Europe's shares plummeted after a report signalled it would not grow in France, fuelling fears that his group would not be able to pay its huge debts.
Drahi responded to investor concerns by ousting the chief executive and spinning off Altice's US arm.