Motorola Inc. (NYSE: MOT) is trying to get rid of another holding in Israel. Sources inform ''Globes'' that that the company is in negotiations to sell its 49% stake in Taldor Communications Ltd. to its partner in the company, Taldor Computer Systems (1986) Ltd. (TASE: TALD). Talks have been underway for several months, but are progressing slowly, even though the parties have reached understandings on a divorce.
Motorola has been selling off its Israeli holdings at a quickening pace. It has already sold Mirs Communications Ltd. and sold its factory in Arad last year. The US telecommunications equipment manufacturer, which is going through one of its less glorious periods, is now seeking to sell one of last investments in Israel.
Taldor Communications is a joint venture of the former Motorola Information Systems and Taldor Group. It is one of the largest integration companies in the Israeli telecommunications market. Its CEO is Ronen Regev and its chairman Arie Rimini.
One of the sticking points in the negotiations is the company's commitments in connection with its vetern Motorola Information Systems employees and their severance agreements. The original agreement mentions substantial severance pay in the event that the employees' work is terminated, but only under certain conditions. The parties disagree over who will bear this cost.
Taldor Group's share price fell 5.3% today to NIS 11.19, giving a market cap of NIS 130 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 20, 2010
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