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Deal talks between Altice and Time Warner Cable are ongoing: source

Traders work by the post that trades Time Warner Cable stock on the floor of the New York Stock Exchange April 20, 2015. REUTERS/Brendan McDermid

FRANKFURT (Reuters) - Altice's acquisition of U.S. cable group Suddenlink has not dampened its interest in buying much larger Time Warner Cable, a source familiar with the matter said.

"Altice is very keen on Time Warner Cable," the person said after Altice's announcement of the $9.1 billion Suddenlink buy from private equity group BC Partners on Wednesday.

Talks between Altice and Time Warner Cable are continuing, the person said, but the European company faces competition for the second-largest cable group in the U.S. from John Malone's Charter Communications.

With a market value of $44.5 billion, TWC would also be big bite for Altice, which has a market value of about $30 billion.

Despite the size of a potential deal, Altice's offer for TWC is expected to be mainly in cash and not largely in shares, the person added.



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(Reporting by Arno Schuetze; Editing by Leila Abboud)