Patrick Drahi, who controls Hot Cable Systems Media Ltd. (TASE: HOT), has asked Minister of Communications Moshe Kahlon to approve a permit for him to control wireless carrier Mirs without him meeting the "Israeliness" criteria he is required to meet to control a strategic company under Ministry of Communications and Ministry of Defense rules. Drahi's request is for an exemption for two years.
From Drahi's letter to the minister, via his lawyers, it emerges that the company buying Mirs from Motorola Israel, Altice Securities SARC, registered in Luxembourg, plans to carry out the acquisition in one of two ways. Either Altice will transfer its rights in Mirs to Hot (of which Drahi owns 44.76%, Yediot Communications 16.8%, three companies of the Eliezer Fishman group 14.6%, and the public 23.82%), or Mirs will be bought outright by Altice, which Drahi controls.
Drahi prefers the second option, and so has asked the minister that for two years from the date of the acquisition, the status quo should be maintained, in which Mirs is not controlled by an Israeli shareholder.
Under rules designed to preserve the state's interest in telecommunications companies, Mirs must be at least 20% owned by an Israeli company, and its management must be in the hands of Israelis with security clearance. Mirs is currently owned by Motorola Israel, which has operated in Israel for decades, but effective control is with Motorola Inc.
Published by Globes [online], Israel business news - www.globes-online.com - on January 14, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010.