Hutchison Telecommunications International Ltd. (NYSE: HTX; HKSE: 2332) has begun rating the bids submitted for the acquisition of Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR). The process began yesterday evening by which time three bids had been received - Ilan Ben-Dov, who is bidding through Scailex Corp. ltd. (TASE: SCIX; Bulletin Board:SCIXF), Shaul Elovitch, who is bidding through Eurocom Group, and Permira Advisers LLP. A fourth bid was previously received from Ishay Davidi's FIMI Opportunity Fund but Hutchison made it clear that that bid was too low.
The emphasis now is on each group's ability to close the deal with each component of the bid being rated. The significance is that the final price is an important factor but issues such as regulatory problems, financing capabilities are no less important.
By early next week the bidders who know who advances to the next stage after receiving approval from Hutchison. Ilan Ben-Dov and Shaul Elovitch are seen as having the best chance of buying the cellular operator simply because both of them are very interested in closing the deal and their judgment concerning the value of the company is different from the funds.
Permira is the dark horse in the race because it is difficult to assess its motivations in making such an investment and the fact is that Partner does not match the usual criteria for a private equity fund investment which should earn returns of over 20% - something which Partner is not expected to achieve.
Published by Globes [online], Israel business news - www.globes-online.com - on August 6, 2009
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