Sources inform ''Globes'' that Internet portal Tapuz People Ltd. (TASE:TPUZ), controlled by Ilan Ben-Dov through Suny Electronics Ltd. (TASE: SUNY), will not enter into talks to acquire Channel 10, and suspended its review of the commercial TV station.
Last week, Israel Securities Authority demanded more information about the debt settlement announced Ben-Dov's investment house, Tao Tsuot Ltd. (TASE: TAO-M), which includes its takeover of Suny in exchange for Tao's bonds. The Securities Authority asked the mutual funds which are the largest Tao bondholders to detail their planned responses to the offer. They must reply this week.
Tao asked its bondholders, to whom it owes NIS 423 million to convert the debt into equity in Tao, which will take over Ben-Dov's 55% stake in Suny, which indirectly controls Orange franchisee Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), as well as other operations, including 62.7% of Tapuz, and is the registered importer of Samsung mobile devices.
Channel 10's owners are continuing to seek a new investor to replace Arnon Milchen, who wants out. Ron Lauder is increasingly likely to increase his holding in the TV station, by buying part of Milchen's stake.
Ben-Dov's withdrawal puts Channel 10 into a bind, as it needs a cash injection to stay in business, and Lauder is the only shareholder who is continuing to do so. He gave the station an advance to move its news company to Jerusalem. Channel 10 reportedly lost NIS 50 million in 2010.
Channel 10's controlling shareholder, Yosef Maiman, has own troubles relating to Egypt's natural gas exporter East Mediterranean Gas Company (EMG), in which he is a shareholder.
Published by Globes [online], Israel business news - www.globes-online.com - on July 17, 2011
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