The Jerusalem District Court today issued a temporary injunction against the granting of a mobile carrier license to Golan Telecom Ltd. at the request of Hezi Bezalel's Marathon Telecom Ltd. until a hearing on Marathon's appeal on Friday.
Judge Noam Sohlberg said that the tenders committee did not properly discuss Golan Telecom's bid or its significance.
Marathon Telecom subsidiary 018 Xfone Communications Ltd. won the original tender with a bid of NIS 705 million, but was subsequently disqualified by the tenders committee when it failed to provide the necessary guarantees from an Israeli bank. The tender was awarded to second-place finisher Select Communications Ltd., controlled by Michael Gelfand and Louis Mayerberg, which bid NIS 695 million. That bid too was disqualified for the same reason, at which point the Golan Telecom, which bid NIS 360 million was awarded the license.
Marathon appealed against Golan Telecom's win in the tender, on the grounds that it should have been given a second chance following Select's disqualification.
Judge Sohlberg said, "The tenders committee explained why it disqualified Select Communications and why Marathon Telecom should not be declared the winner, but it did not explain why Golan Telecom should be declared the winner, except for the fact that Golan Telecom 'offered the next valid bid after Select in the auction. This is insufficient, even based on the tender committee's decision to cancel the winner's win in the tender since the next winner is not automatic, and still requires examination, discussion, decision, and reasoning."
Patrick Drahi's Mirs Communications Ltd. won the second of the two licenses in the tender, with a bid of NIS 705 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 14, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011