Eurocom seeks to prevent Bezeq increase YES stake

Eurocom: Bezeq must choose - satellite TV or IPTV.

The struggle between Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) and Eurocom Group over YES satellite broadcaster ius heating up. Sources inform ''Globes'' that Eurocom has sent a position paper to the Antitrust Authority outlining the company's opposition to Bezeq increasing its stake in YES and Bezeq's control of two of Israel's three broadcasting infrastructures.

A copy of the letter was sent to the Restraint of Trade Tribunal, which is hearing Bezeq's appeal against the Antitrust Authority, which opposes Bezeq increasing its stake in YES. Sources involved in the case said that the court refused to accept Eurocom's letter, which supports the position of the Antitrust Authority, even though all the parties are aware of it.

Eurocom, owned by chairman Shaul Alovitz, says that it is illogical to allow Bezeq to increase its stake in YES because this would give Bezeq control of both satellite television broadcasting and IPTV infrastructure. Eurocom argues that Bezeq should decide what it wants to control - either YES or IPTV, but not both.

Eurocom is represented by Adv. Dror Strum, Antitrust Authority director general Ronit Kan's predecessor.

Bezeq owns 49.78% of YES, formally known as DBS Satellite Services (1998) Ltd., Eurocom owns 32.63%, Polar Investments Ltd. (TASE: PLR) owns 7.92%, Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) owns 5.01%, and Lidan Ltd. owns 4.66%.

Published by Globes [online], Israel business news - www.globes-online.com - on April 29, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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