Amikam Cohen, whom Hutchison Telecommunications International Ltd. (NYSE: HTX; HKSE: 2332) has appointed to oversee the negotiations for the sale of its controlling interest in Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), flew to Hong Kong today to meet Hutchison executives to decide on the final buyer. Cohen is the former CEO of Partner. Dan Eldar, who has been handling the details of the talks, went with him.
Sources inform ''Globes'' that Hutchison will probably decide on the winner within a day or two, now that the bidders have made their final offers, and negotiations on improving the bids were held. Two companies are the finalists: Scailex Corp. ltd. (TASE: SCIX; Bulletin Board:SCIXF) controlled by Ilan Ben-Dov, and Eurocom Group, owned by Shaul Elovitch. Hutchison has held several rounds of calls with both men to improve their bids.
Permira Advisors LLP withdrew from the race on Friday, after submitting an improved bid. It decided against continuing negotiations that would pull the price upwards and would prod the other bidders to make even higher offers.
The sources added that in view of the financing problems for a deal faced by some of the bidders, and the banks' willingness to finance up to half of the price of a deal, Hutchison Telecommunications has agreed to provide up to several hundred millions of shekels in financing to the buyer. The goal is help some of the bidders, which have encountered problems in securing financing, to close a deal. In exchange, the buyer will put a lien on the Partner shares, and will pay a hefty fine if it fails to meet the financial covenants.
Published by Globes [online], Israel business news - www.globes-online.com - on August 9, 2009
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