French-Israeli Billionaire Patrick Drahi Faces Corruption Scandal with Altice Empire
French-Israeli Billionaire Patrick Drahi Faces Corruption Scandal with Altice Empire - Gillett News French-Israeli billionaire Patrick Drahi, the owner of the multinational business empire Altice, is set to address investors amid a corruption scandal that has gripped his company. Executives in the United States and France within Drahi’s empire have been dismissed, suspended, or stepped back as the scandal has spread. Drahi has amassed a fortune of over $10 billion, making him the 13th richest man in France. He built his network of companies through leveraged acquisitions, becoming a major player in the telecom industry in France, Israel, Belgium, Luxembourg, Portugal, and Switzerland. The corruption claims and rising interest rates have forced Drahi to renegotiate loan terms, presenting a significant challenge. Despite this, Drahi must work to mitigate the damage.
게시됨 : 2 년 전 ~에 의해 Stacey Scott ~에 Business
French-Israeli billionaire Patrick Drahi, the owner of the multinational business empire Altice, is set to address investors amid a corruption scandal that has gripped his company. Drahi’s empire includes telecommunications and media holdings in Europe, North America, and Israel, such as the i24 broadcaster. The scandal arose when one of Drahi’s top lieutenants, Portuguese billionaire Armando Pereira, was detained in Portugal. Pereira is accused of corruption and money laundering, allegedly setting up a bogus supplier network to embezzle money from Altice’s procurement system.
Executives in the United States and France within Drahi’s empire have been dismissed, suspended, or stepped back as the scandal has spread. As a generally low-profile figure, Drahi has amassed a fortune of over $10 billion, making him the 13th richest man in France.
Drahi built his network of companies through leveraged acquisitions, becoming a major player in the telecom industry in France, Israel, Belgium, Luxembourg, Portugal, and Switzerland. He also owns Altice USA and a portion of Britain’s BT. Additionally, Drahi acquired Sotheby’s auction house in 2019. However, his investment spree was financed by accumulating a debt pile of around $60 billion.
With rising interest rates and the corruption scandal making headlines, Drahi’s communications with investors this week will be closely watched. Altice has downplayed the investigation, stating that it is cooperating with authorities and highlighting the suspension of several employees. However, there are concerns that the allegations expose fundamental issues with the company’s control and governance.
Born in Casablanca, Morocco, Drahi moved to France at a young age and pursued studies in engineering. He began his entrepreneurial career by buying troubled cable and mobile operators, eventually taking control of SFR, France’s second-largest mobile operator in 2014. Known as a “cost killer,” Drahi streamlined the companies he acquired. However, the corruption claims and rising interest rates have forced Drahi to renegotiate loan terms, presenting a significant challenge.
Drahi’s success has been largely attributed to access to low-cost debt. Selling off infrastructure assets like telecoms masts and fiber networks has been a key strategy to raise cash. While these options are becoming limited, Drahi still has some sellable assets, such as the Meo operator in Portugal and data centers.
Amid the corruption inquiry, Drahi must work to mitigate the damage. Company CEO Arthur Dreyfuss emphasizes that, until proven otherwise, Altice is a victim in this situation. Drahi’s ability to address investor concerns and navigate the repercussions of the scandal will be crucial for his business empire’s future.
주제: Corruption