Select Communications Ltd. is negotiating with the banks for a NIS 1.2 billion credit line to set up its mobile network. The company needs NIS 705 million for its guarantee and NIS 500 million for its initial set up costs, working capital, and so forth.

Select Communications is in talks with all of Israel's banks, but sources close to the company say that there is a feeling that some banks, which have investments in mobile carriers, are not going out of their way to help the company, although the banks aren’t turning it away, either. This feeling is apparent in the tightening terms for guarantees from the company.

Sources added that some banks carried out feasibility studies on Select's business plan.

Select Communications' backer, Michael Gelfand has been in Israel for the past few weeks for the negotiations to secure the bank financing. He is holding the talks together with his Israeli partner, Shuki Gleitman, and Noam Fink who led the company's bid in the mobile carrier tender.

Select Communications replaced Hezi Bezalal's 018 Xfone Communications Ltd., owned by Marathon Telecom Ltd., which was disqualified after it failed to secure bank financing following its win in the tender. Patrick Drahi's Mirs Communications Ltd. is the other winner in the tender.

Select Communications' executives have also met Minister of Communications Moshe Kahlon and asked him to expedite issues related to the setting up of the network, including the construction of new antennas and the issue of joint antennas with other carriers.

Published by Globes [online], Israel business news - www.globes-online.com - on June 29, 2011

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