Sources inform ''Globes'' that two groups are seeking to acquire Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR): Eurocom Group, owned by chairman Shaul Elovitch; and First Israel Mezzanine Investors Fund (FIMI), run by CEO Ishay Davidi. There is little likelihood that they will join forces because each wants to control the cellular operator, and neither will play second fiddle to the other.
Elovitch already has telecommunications interests, and Partner would strengthen his standing in the market. For Davidi, a takeover of Partner would be a major investment in the telecommunications market, which is why he would insist on leading the deal, without his partners having their own agendas.
Reports that Partner controlling shareholder, Hong Kong-based Hutchison Telecommunications International Ltd. (HKSE: 2332; NYSE: HTX) have been swirling in the Israeli market ever since Hutchison held its offering on Wall Street and got back most of its investment in the Israeli cellular operator. Every few months, reports crop up about a possible sale of Partner, depending on Hutchison's financial standing at the time. Hutchison owns 51.3% of Partner
The previous round of rumor began 18 months ago, when Egypt's Orascom Telecom Holdings (LSE: OTLD; CASE: ORTE) tried to acquire Hutchison Telecommunications, which would have given its control of Partner.
Hutchison Telecommunications has been suffering in the current global economic crisis, and it has suffered heavy losses, hence a possible interest in selling Partner.
Published by Globes [online], Israel business news - www.globes-online.com - on June 7, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009