Big banks vie to finance 012 Smile deal

The financing package will reportedly amount to NIS 800 million.

Bank Hapoalim (TASE: POLI) and Bank Leumi (TASE: LUMI) are vying to lead the syndicate that will finance Joseph Maiman's acquisition of the businesses of 012 Smile.Communications Ltd. (Nasdaq:SMLC; TASE: SMLC) by Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL). The financing package will reportedly amount to NIS 800 million.

The syndicate will include two of Israel's three mid-sized banks: Israel Discount Bank (TASE: DSCT), Mizrahi Tefahot Bank (TASE:MZTF), and First International Bank of Israel (TASE: FTIN1;FTIN5).

Industry sources believe that Maiman will pick the lead bank in a few days.

In the last two big takeovers in Israel's telecommunications industry, Bank Leumi led the financing for Ilan Ben-Dov's acquisition of 51% of Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), and Bank Hapoalim led Shaul Elvotich's acquisition of the controlling interest in Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) through Smile. He is now selling Smile's Internet services provision and international calls carrier businesses so that Smile, as a shell, can take over Bezeq.

Bank Leumi has written off Maiman's debt to it for the acquisition of his stake in Channel 10, which he controls through his private company Merhav MNF Ltd..

Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2009

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

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