Former Bank Hapoalim chairman Shlomo Nehama has joined the joint mobile virtual network operator (MVNO) of Sir Richard Branson's Virgin Group Ltd. and Alon Holdings Blue Square - Israel Ltd. (NYSE: BSI; TASE: BSI), controlled by chairman David Wiessman. Blue Square will own the controlling interest in the venture, and Virgin and Nehama will have minority stakes.
Although the joint venture has not applied for an MVNO license from the Ministry of Communications, its managers have met with Israel's mobile carriers to try to reach agreements.
Nehama apparently joined the joint venture in order to become a player in the telecommunications market. He planned to become a party in the controlling core of Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ), considered participating in one of the consortia bidding for Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), and made other, less well known, attempts to enter the market.
The Virgin-Blue Square joint venture will be able to leverage Blue Square's supermarkets and Dor Alon Energy in Israel (1988) Ltd's (TASE:DRAL) gas stations and convenience stores with the global Virgin brand to enter the mobile market.
Published by Globes [online], Israel business news - www.globes-online.com - on November 14, 2010
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