For Altice, this is a logical deal. Not only is it on an acquisition spree in Europe and elsewhere, such an acquisition would address the need for convergence between fixed and mobile. Vodafone has shown this repeatedly with its takeover strategy, most recently in Germany with the acquisition of Kabel Deutschland. The fact that cable operators like Altice are most often regional is not a problem. For Altice, a takeover of Base means its Belgian unit Numericable will be able to offer services nationwide, rather than just in Brussels.
For KPN, a sale of Base is undoubtedly an attractive offer, assuming the price is good. The Dutch operator already tried to sell Base in 2012. Base is a small company, both for KPN and in the Belgian fixed and mobile markets. When KPN agreed to sell E-Plus in Germany, it officially changed its focus to the Netherlands and Belgium, but there has been little to see of this strategy in Belgium to date. Base is doing what it should, such as rolling out 4G, but not trying anything more. It's questionable whether the company is really part of KPN's core activities.
Finally, the price. In 2012, Base was thought to be worth around EUR 1.8 billion. This appears on the high side, given its revenue and EBITDA are not growing and it had minimal cash flow. KPN can use any proceeds though, for reducing debt, paying dividends or even an acquisition of its own.
