Scailex Corporation (TASE: SCIX; Bulletin Board:SCIXF) chairman Ilan Ben-Dov has flown to Hong Kong to meet Hutchison Telecommunications International Ltd. (NYSE: HTX; HKSE: 2332) chairman Canning Fok, suggesting that Scailex is the preferred buyer of Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR). The fact that Eurocom Group owner Shaul Elovitch is not going to Hong Kong at this time reinforces the implication that Ben-Dov is the leading candidate. Sources close to the negotiations confirm that the man who goes to Hong Kong will probably acquire the controlling interest in Partner.
Yesterday, "Globes" reported that Amikam Cohen and Dan Eldar, whom Hutchison Telecommunications appointed to handle the sale of Partner, were due to fly to Hong Kong to close the deal. In the end, Cohen did not go, but will apparently leave today or tomorrow, because Fok decided not to come to Israel, despite efforts to bring him. Instead, Ben-Dov was asked to go to Hong Kong.
As of this morning, Eurocom has received no notice that it is out of the running for Partner, or that its bid was too low, or that Hutchison Telecommunications prefers Scailex's offer. Sources close to the sale said that the door for Eurocom had not been closed, but it is hard to shake off the impression that Ben-Dov's trip means that he has the better chance of a deal.
In other words, cautious optimism is warranted, but in cases of such experienced businessmen and when emotions are involved in such an important process, it is impossible to know if or when someone will play a last-minute trump card. Since Friday, it has been apparent that Ben-Dov had the greater chance of acquiring Partner because he signaled great determination during the process, and that he was prepared to pay more to close a deal. It is not that Elovitch has been sitting quietly, but for now Ben-Dov is the leading candidate, although Elovitch has not yet said the last word.
Partner today published its financial report for the second quarter of 2009.
Published by Globes [online], Israel business news - www.globes-online.com - on August 10, 2009
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