Permira pulls out of race to buy Partner

The investment fund has concluded that the cost of buying Partner is now too high.

Investment fund Permira Advisers LLP have pulled out of the race to acquire cellular operator Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) from Hutchison Telecommunications International Ltd. (NYSE: HTX; HKSE: 2332). Sources close to the bidding process report that Permira was asked to improve its bid but refused to do so unless assured that it would not be asked to do so again.

Permira reportedly invested major efforts in preparing its bid. This included hiring law firm Yigal Arnon & Co. Advocates, accountants PriceWaterhouseCoopers Israel Kesselman & Kesselman, Deutsche Bank and leading technological experts.

But Permira's managers have now concluded that the cost of Partner has now risen beyond what they deem to be a reasonable price.

Permira's withdrawal means that two bidders are left in the race to buy Partner - Ilan Ben-Dov, who is bidding through Scailex Corp. ltd. (TASE: SCIX; Bulletin Board:SCIXF), Shaul Elovitch, who is bidding through Eurocom Group.

Published by Globes [online], Israel business news - www.globes-online.com - on August 9, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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