The Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) Virgin mobile virtual network operator (MVNO) is in advanced talks with Orange franchisee Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) to use its network. The Dor Alon-Virgin MVNO had been in talks with Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) subsidiary Pelephone Communications Ltd. until a few months ago.
Dor Alon chairman teamed up with Richard Branson's Virgin Group Ltd. for the MVNO venture in Israel. Partners include former Bank Hapoalim chairman Shlomo Nehama. David Weissman son Shanir Weissman and former Cellcom CFO Yoav Tamir are in charge of the negotiations with Partner. The venture has also hired former Cellcom Internet executive Adi Weiss, and is reportedly seeking a CEO. Tamir is in charge of the financial side and Weiss is in charge of the technological side of operations.
Market sources believe that Dor Alon-Virgin will shortly announce a deal with Partner, and will also disclose some of its business plans. Dor Alon wants to leverage the marketing power of its supermarket chain Alon Holdings Blue Square - Israel Ltd. (NYSE: BSI; TASE: BSI), Israel's second largest supermarket, to provide mobile services. Virgin's Israeli operations are run by former Pelephone CEO Yigal Bar-Yosef, but he is unlikely to run the MVNO.
Both parties declined to comment on the report.
Published by Globes [online], Israel business news - www.globes-online.com - on February 27, 2011
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