(Adds details on deal, background; updates share movement)
Sept 2 (Reuters) - Altice USA Inc's ATUS.N bid on Wednesday to snap up the U.S. assets of Cogeco Inc CGO.TO and sell the rest to Rogers Communications Inc RCIb.TO is facing resistance from the Canadian cable company's top investor.
Cogeco said Gestion Audem Inc, which holds a majority voting share in the company, has opposed Altice's all-cash offer of C$10.3 billion ($7.88 billion). The bid will be reviewed by the board on Wednesday.
Meanwhile, Rogers, which owns about 41% of the subordinate voting shares in Cogeco, said buying the company's Canadian assets will help it expand services to 1.8 million homes and businesses in the country.
Shares of Cogeco jumped nearly 18%, while Altice USA and Rogers rose about 3% each.
As part of the offer, Altice said it has valued Cogeco's U.S. assets, Atlantic Broadband, the country's ninth largest cable operator, at about C$4.8 billion.
The U.S. cable sector has witnessed several deals in the recent years as fierce price competition and the need for significant investments exert pressure on the reliable cash flows of these stable businesses.
Cable TV providers have also been struggling as consumers continue to cancel their cable and satellite television subscriptions and shift to online video streaming such as Netflix Inc NFLX.O and Amazon.com Inc's AMZN.O Prime Video.
New York-based Altice said the proposed purchase of Atlantic Broadband would allow it to build on its previous cable acquisitions in the United States and expand operations across 11 states on the East Coast.
Cogeco entered the U.S. market in 2012 when it bought Atlantic Broadband for $1.36 billion, aiming to find growth outside of Canada.
($1 = 1.3071 Canadian dollars)