In the first test for Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) shareholders following the reports of the investigation into transactions with companies controlled by Shaul Elovitch, a general meeting of Bezeq shareholders will decide on August 15 whether to approve the appointment of Haggai Herman to another term as an external director at Bezeq. Investment institutions holding Bezeq shares will have an opportunity to intervene in what is happening on the company's board of directors.
Herman, who is completing a full term as external director, was involved in all the insider transactions for which the Israel Securities Authority is now investigating Elovitch and senior company officeholders. He was not a member of the special board of directors committee for the DBS Satellite Services (1998) Ltd. (YES) acquisition deal, but he participated in the discussions, and his position in support of the deal and statements in favor of it appear in the minutes of the discussions. His involvement in the Spacecom transaction, in which satellite broadcaster Yes bought services from Sapcecom (also controlled by Elovitch), included being a member of the special committee for it.
Herman was not made a Bezeq director because of his background or special experience in communications. He is a friend of Amikam Shorer, Elovitch's right hand. They are neighbors and attend the same synagogue, and associates say they have been friends for many years.
The Bezeq shareholders have a chance to make a stand, and say, "No more. No more appointments of cronies beholden to the controlling shareholder who support him in votes in the board of directors. No more lax directors." August 15 will be the test, and the feeling is that the investment institutions will not remain indifferent.
Published by Globes [online], Israel Business News - www.globes-online.com - on July 13, 2017
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