Representatives of Permira Advisers LLP left Israel last Friday, and the investment firm will reportedly not make a bid for control of Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR). However, it is possible that their departure is unrelated to any decision about a bid.
Sources inform ''Globes'' that Permira's representatives left Israel after the representatives of Hutchison Telecommunications International Ltd. (NYSE: HTX; HKSE: 2332), Amikam Cohen and Ran Eldar, did not bother to meet them. Permira had sent several representatives to examine the feasibility of an investment in Partner. The representatives conducted a thorough review, and met with Antitrust Authority and Ministry of Communications officials. They also met other bidders: Ilan Ben-Dov, who is bidding through Scailex Corp. ltd. (TASE: SCIX; Bulletin Board:SCIXF), and Shaul Elovitch, who is bidding through Eurocom Group, in order to learn about their plans.
The Permira representatives said that the fund might not make a joint bid with an Israeli partner, and that it could go it alone. Whatever the case, Permira would be the dominant party in any consortium. Both Ben-Dov and Elovitch declined to team with Permira on these terms.
Furthermore, the recent rise in Partner's share price in recent weeks also influenced Permira's attitude toward a deal. Sources close to the sale process said that if Permira was serious, its representatives would have stayed in Israel until the end of the process.
The bidders for Hutchison Telecommunications' 51.33% stake in Partner are due to submit their final bids tomorrow. On the basis of the offers, Hutchison will decide with whom to open negotiations on a sale. Ben-Dov and Elovitch are expected to make the cut, although both men have said that they will not let Hutchison drag out negotiations in an attempt to make them improve their offers.
Hutchison believes that both Scailex and Eurocom's offers will be binding and that they will stand by them; in other words, that they have secured financing. On the sidelines, institutional investors are waiting to join whichever company wins.
The institutional investors are Bank Leumi (TASE: LUMI) unit Leumi and Partners Ltd. together with Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), and probably Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) as well. First Israel Mezzanine Investors Fund (FIMI) will probably not reach the final stage because its bid will be lower than the others.
Partner's share fell 3.6% at the opening on Nasdaq today to $17.90, giving a market cap of $2.77 billion. The share fell 1.5% on the TASE to NIS 69.80.
Published by Globes [online], Israel business news - www.globes-online.com - on August 4, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009