018 Xfone Communications Ltd. controlled by Hezi Bezalel's Marathon Telecom Ltd. has told the Ministry of Communications that it will probably not succeed in obtaining the guarantees needed to secure its concession for the new cellular network tender. Last week, Minister of Communications Moshe Kahlon met with the tenders committee and decided to seek legal advice before deciding whether to disqualify Bezalel or grant him a few days extension.
Sources inform "Globes" that Bezalel has not been able to obtain the necessary guarantees from Israel Discount Bank (TASE: DSCT) and therefore the bank did not provide him the guarantee. Bezalel's office informed the Ministry of Communications that there are only technical issues and that Bezalel has the necessary funds. However, as time goes by the Ministry of Communications is becoming concerned that Bezalel has other problems that are preventing him from coming up with the NIS 710 million guarantee.
As "Globes" was told last week, Bezalel was supposed to present the guarantee by 5:00 PM last Thursday, but delayed the meeting with the Ministry of Communications. In the end, he did not arrive to present the guarantee and his office requested an extension.
Many rumors have circulated over the last few weeks that Bezalel is running into difficulties obtaining the necessary financing for the project as a result of regulatory issues and permits from the Ministry of Communications for building small antennas without which the cellular network would not function. Bezalel's office denied these claims and said that they intend to follow through with their commitments to set up the project.
Published by Globes [online], Israel business news - www.globes-online.com on May 29, 2011
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