Walt Disney Co. (NYSE: DIS) investment arm Shamrock Holdings has decided not to bid for Motorola Inc. (NYSE: MOT) unit MIRS Communications Ltd. for the time being. Shamrock is waiting to see developments in the market following the sale of Partner Communications Co. Ltd. (Nasdaq: PTNR; TASE:PTNR; LSE:PCCD). In any event, Shamrock will not bid for Partner.
Investment funds Providence and Cerberus have also decided not to take part in the Partner sale, in light of the prices being asked, and the expected inablility to realize value from the deal.
All parties interested in purchasing MIRS had been asked to submit their non-binding bids by last Thursday in order to enter the information room and take part in the due diligence stage. One company that has expressed interest in MIRS is Hot Cable Systems Media Ltd. (TASE: HOT), which has still not made a final decision about the acquisition. Another company which has submitted an non-binding bid is Eurocom unit 012 Smile.Communications Ltd. (Nasdaq:SMLC; TASE: SMLC).
Market sources believe that the sale will proceed after the sale of Partner. Companies which do not succeed in acquiring Partner may then consider entering Israel's cellular market through MIRS.
Shamrock declined to comment on the report.
Published by Globes [online], Israel business news - www.globes-online.com - on July 26, 2009
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