US billionaire Len Blavatnik is interested in acquiring Shaul Elovitch's stake in satellite broadcaster YES, formally known as DBS Satellite Services (1998) Ltd. Blavatnik representatives have asked for details about the company, but it is not clear if the contact will develop into actual negotiations.
Elovitch owns 32.6% of YES through Eurocom Group. He must sell the YES stake following his acquisition of the controlling interest in Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ), which owns 49.8% of the satellite broadcaster, and which is banned from increasing its holding.
Four or five companies are interested in Eurocom's holding in YES, including private equity funds SKY and Permira Advisors LLP. Talks are expected to pick up after New Year's.
Eurcom's holding in YES is the last obstacle to the company's acquisition of the 30% controlling interest in Bezeq through subsidiary 012 Smile.Communications Ltd. (Nasdaq:SMLC; TASE: SMLC). However, both the Antitrust Authority and the Ministry of Communications will probably add more conditions to the Smile-Bezeq deal. Elovitch has already sold Smile's international calls and Internet service provider businesses to Joseph Maiman-controlled Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL), leaving Smile as a shell for acquiring Bezeq.
Blavatnik resides in the US and London. "Forbes" ranks him 44th in its list "400 Richest Americans in 2009", with a fortune of $5 billion. In 2008, he made a bid for Hebrew daily "Ma'ariv", but no deal was reached with the paper's owner, Ofer Nimrodi.
Published by Globes [online], Israel business news - www.globes-online.com - on December 28, 2009
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