Dov Moran, the founder of mobile phone venture modu, is apparently considering operating the company on a reduced scale and refocusing development on a difference device than the one it had hoped to market.
The revised operating plan comes after a large IPO on the Tel Aviv Stock Exchange (TASE) failed about three weeks ago.
After the failure of the IPO, Moran met with journalists and said that he will have to lay off most of the employees at the company, and that the firm will switch to a different mode of operation, though he said that the company's candle was not yet extinguished.
The IPO failed primarily because institutional investors, including Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5), and Excellence Investments Ltd. (TASE: EXCE), decided to pass on investing at the time. After Moran and the underwriters realized that institutional investors were sitting it out, and the company did not have an anchor investor, it was clear to them that the offering had failed and they had to announce its cancellation.
Modu declined to comment on the report.
Published by Globes [online], Israel business news - www.globes-online.com - on December 13, 2010
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