All of Israel's three cellular operators have decided to bid for their smaller rival.
Motorola Inc. (NYSE: MOT) wants the bidders for Mirs Communications Ltd. to submit their final offers by mid-month. All of Israel's three cellular operators have decided to bid for their smaller rival, although both the Ministry of Communications and the Antitrust Authority are opposed to them acquiring the company.
The cellular operators have decided to ignore this regulatory problem for now, and are pursuing the tender as if no objections are anticipated. The companies feel that if a regulatory problem arises, it can be solved if and when there is deal. For now, there is no reason not to try to persuade the Ministry of Communications and the Antitrust Authority to approve it.
The cellular operators are relying on precedent: the acquisition of bankrupt supermarket chain Clubmarket by Shufersal Ltd. (TASE:SAE;Pink Sheets: SSLTF), to which the Antitrust Authority eventually acquiesced with conditions, after a struggle.
Published by Globes [online], Israel business news - www.globes-online.com - on September 6, 2009
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