Hezi Bezalel's 018 Xfone Communications Ltd., one of the two winner's in Monday's Ministry of Communications tender for new mobile carriers, is in talks with Israel Discount Bank (TASE: DSCT), Bank Leumi (TASE: LUMI), and Bank Hapoalim (TASE: POLI) to secure financing for his new business.
Discount Bank will be the main financier. It is also the bank that financed Bezalel's acquisition of Xfone and it "feels comfortable" working with him. The bank will probably provide most of the funding for the necessary guarantee. To finance the set-up stage of the mobile network, Discount Bank will hook up with either Bank Leumi or Bank Hapoalim to set up a syndicate.
Bezalel said yesterday that he intends to establish a telecommunications group, and that he won't stop at mobile services, but enter television and expand his Internet services. He told "Globes" that he is also interested in becoming a partner in Israel Electric Corporation's (IEC) (TASE: ELEC.B22) telecommunications infrastructure venture, although he does not know if he will be allowed to participate in the tender to select a partner.
Published by Globes [online], Israel business news - www.globes-online.com - on April 14, 2011
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