Mirs a Motorola and Ampal's holding in-line for the fourth cellular phone carrier license in Israel.
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Another Motorola Subsidiary Enters Israel's Cell Phone Race
By TheMarker.com Staff
11/16/00 4:16 PM ET
Israeli Communications Minister Binyamin Ben-Eliezer will license Motorola ( MOT - news) subsidiary Mirs as Israel's fourth cellular provider, the Maýariv newspaper reports.
Before granting its license, the minister will summon the three extant cellular providers -- Pele-Phone Communications, Cellcom and Partner Communications (PTNR:Nasdaq ADR - news) -- to express their position.
It may be assumed that Mirs' potential competitors will petition the High Court of Justice against the license on grounds of prejudicial treatment. Mirs has not participated in any tenders and will not be licensed on a competitive basis, they are expected to argue.
The director general of the communication ministry, Danny Rosenne, today said, "The possibility of making Mirs a cellular provider has nothing to do with the spectrum auction planned for early 2001," when the state plans to auction off four packages of frequencies for third-generation wireless services.
Rosenne said the frequencies Mirs is already licensed to use are enough for second-generation services. That means Mirs could become a cellular provider without winning the G3 bid. By mid-2001 there could, therefore, be at least five cellular companies in Israel.
Mirs' shareholders besides Motorola, with 67%, include Ampal American Israel Corp. (AMPL:Nasdaq ADR - news), with 25%. Poalim Investments is negotiating to buy Ampal's interest in the cellular carrier.
Motorola is seeking to sell its 50% of Pele-Phones, too. One contender is the Spanish phone company Telefonica (TEF:NYSE ADR - news), which wants to buy a group of Motorola's cellular operators around the world.
Meanwhile, Israeli tycoons Zadik Bino and Nochi Dankner, operating through Ganden Holdings and the Israel Corp., have set up a new company that will today file an offer to buy Motorola's stake in Pele-Phone. Maýariv reports that the company will be divided equally among its three founders: Bino, Dankner and advocate Ram Caspi, who formed the group.
The original group included Merrill Lynch and local brokerage firm IBI, but both pulled out. |
