Disappointed by Partner, Shaul Elovitch eyes Bezeq

Eurocom Group owner Shaul Elovitch is unlikely to be deterred by his unsuccessful attempt to acquire control of Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR). His dream is still to become a major player in Israel's telecom market, and sources inform "Globes" that Elovitch's next step will be to try and buy a controlling stake in Bezeq Israel Telecommunications Company Ltd. (TASE:BZEQ). Bezeq's shareholders are reportedly eager to sell.

Elovitch, who was beaten to the purchase of Partner from Hutchison Telecommunications International Ltd. (NYSE: HTX; HKSE: 2332) by Scailex Corporation (TASE: SCIX; Bulletin Board:SCIXF) today told "Globes" that he wishes Ben-Dov every success and that he took the right decision from his point of view. He said that Eurocom had been prepared to go a very long way to complete the deal but that it had not been enough.

He stressed that there had great potential synergy between Partner and Eurocom and he had been prepared to pay a lot of money for it. But the bottom line was that it had not helped and he was at peace with himself that he had done everything he could.

Elovitch said, "I decided how much I was prepared to pay and that was it. I was asked to improve the offer and I did not agree."

He declined to disclose the size of his offer was.

When Elovitch decided to become a major player in Israel's telecom market he set his sights on either Partner or Bezeq. He concentrated on Partner because Hutchison wanted to sell. Now he will focus on Bezeq wth whom he has frequent dealings through Eurocom.

Elovitch and Bezeq will anyway be talking as they discuss the break up of their partnership over satellite TV broadcaster YES as soon as the High Court of Justice has ruled on the petition against the merger between YES and Bezeq.

Suddenly the picture regarding YES has changed as Elovitch is set to start negotiations for Bezeq in its entirety.

Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2009

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