The trading volume in Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) was the third largest on the Tel Aviv Stock Exchange (TASE) this morning, behind Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) and Israel Chemicals Ltd. (TASE: ICL). This morning trading volume of NIS 25.6 million is 45% of Bezeq's average daily trading volume over the past three months. The share was down 3% to NIS 5.44 by midday.
The reason for the heavy trading volume is the maturing of employee warrants today. The options trustee, Tamir Fishman & Co. is handling the trading.
In November 2005, Bezeq issued to employees 122.7 million warrants each convertible into one share, amounting to 4.71% of the company's share capital, fully diluted. The options were part of the privatization of the company to Ap-Sab-Ar Holdings Ltd. (the Apax Partners-Saban Capital Group Inc.-Arkin consortium), which currently owns 40.7% of Bezeq. One third of these warrants - 40 million - mature today.
The options were granted for free. They are being exercised today at a strike price of NIS 1.95, i.e. at NIS 4.073 adjusted for dividends distributed since November 2005, and linked to the Consumer Price Index (CPI). Bezeq's opening price today was NIS 5.30 per share, down from its base price of NIS 5.60.
Bezeq's share fell 5.5% at the opening, but has since been steadily recovering. 4.3 million shares changed hands in morning trading, amounting to over 10% of the warrants that mature today.
Published by Globes [online], Israel business news - www.globes-online.com - on November 16, 2008
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