(Bloomberg) -- Saudi Telecom Co. has emerged as the highest bidder for Altice’s Portuguese business, a key divestment for tycoon Patrick Drahi as he seeks to pare debt at his telecom empire, people with knowledge of the matter said. 

The Middle Eastern carrier submitted the highest binding offer, putting it in pole position in the race to acquire the business, the people said. Altice has now asked the two other remaining suitors to revise their proposals, according to the people, who asked not to be identified because the information is private. 

A competing Warburg Pincus-backed consortium — which also includes Zeno Partners and former banker António Horta-Osório — has indicated it’s unwilling to increase its bid, the people said. Discussions with telecom billionaire Xavier Niel’s Iliad SA have also slowed recently, according to the people. 

Drahi was hoping to fetch as much as €10 billion for Altice Portugal, though potential bidders have been struggling to meet that expectation, Bloomberg News has reported. It will take at least a few weeks for an agreement to be reached, the people said. 

Altice’s high price expectations could still make it difficult to come to a deal, and there’s no certainty the negotiations will lead to a transaction, according to the people. A sale to state-owned Saudi Telecom may be seen as more politically sensitive, and it’s possible Altice could opt for a different buyer, some of the people said. 

Representatives for Altice, Iliad, Saudi Telecom and the Warburg consortium declined to comment. 

Drahi is selling assets to pay down some of the $60 billion debt pile that he amassed through years of acquisitions. Altice’s assets in Portugal include the MEO carrier — which offers fixed-line, wireless and pay-TV services in the country — as well as a stake in a fiber-optic network it jointly owns with Morgan Stanley’s infrastructure arm. 

Bloomberg News reported Friday that French prosecutors have opened their own preliminary probe into potential corruption linked to Altice, just months after the detainment of co-founder Armando Pereira and other business associates in Portugal. 

A three-year Portuguese investigation into alleged corruption, tax fraud and money laundering culminated last summer in the temporary detention of Pereira, Altice’s co-founder and former chief operating officer. He was released on a €10 million bail. His lawyers have said he looks forward to clearing his name, while Altice has said it’s a victim of the alleged wrongdoings in Portugal and it will collaborate with the authorities.

--With assistance from Swetha Gopinath, Matthew Martin and Benoit Berthelot.

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