Jonas Birgersson, the CEO of Swedish fiber optic broadband provider ViaEuropa AB, is in talks to team up with Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) in the tender for the Israel Electric Corporation (IEC) (TASE: ELEC.B22) fiber optic venture. Elbit Systems and a consortium led by Ram Belinkov are shaping up to be the two dominant consortia participating in the tender, and other companies will probably join one or the other of them.
Birgersson was invited to Israel by Cisco Systems Inc. (Nasdaq: CSCO) to interest him in the IEC venture.
Today, the tenders committee announced that, last week, four investment groups have registered for the process for choosing an investor and controlling shareholder in the fiber optic venture: Rapac Communication and Infrastructure Ltd. (TASE: RPAC) with Ram Belinkov's Triple M Power Stations Ltd.; BATM Advanced Communications Ltd. (LSE: BVC), which will reportedly join one of the two consortia; ViaEuropa and Elbit Systems. Tamares Telecom has apparently decided against participating in the tender, or it may join one of the consortia later. Telecom Italia SpA (NYSE: TI; BIT: TIT) has submitted reservations and clarifications, but will not head a consortium or make a sole bid, if it decides to participate in the tender.
The next stage in the tender, scheduled for March, is the submission of opening bids. The financial bidding process will be held in April, and the tender winner will be announced in May.
Published by Globes [online], Israel business news - www.globes-online.com - on February 9, 2012
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