Delek again in talks with Drahi on HOT stake

If Drahi buys Delek's stake, he will owns 48.73% of the cable TV company.

Delek Group Ltd. (TASE: DLEKG) has renewed initial talks with Patrick Drahi on a possible sale of its stake in Hot Cable Systems Media Ltd. (TASE: HOT).

Delek apparently initiated the resumption in talks, because it wants to sell its HOT stake now that Drahi has become the largest shareholder in the company. In addition, Delek's holding in HOT has become a purely financial investment, and it has reduced its involvement in the company's affairs.

Sources say that the parties disagree on the price. Delek is asking more than NIS 35 per share for its HOT stake. Drahi bought his initial stake in HOT at NIS 33.50 per share, but offered NIS 35 per share in his recent offer to purchase in which he acquired 12% of the company to boost his stake to 32.77%.

Yitzhak Tshuva-controlled Delek owns 15.96% of HOT through Delek Investments & Properties Ltd., and if Drahi buys the stake, he will own 48.73%. Drahi is not trying to take over HOT, and he has an understanding with the other main shareholders, Fishman Holdings and Yediot Communications Ltd. to cooperate with them. He is a strategic investor, and is therefore expected to expand his involvement in the company.

HOT's share fell 0.6% today to NIS 36.94.

Eliezer Fishman is the controlling shareholder in “Globes”.

Published by Globes [online], Israel business news - - on October 22, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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