The tenders committee has postponed the Israel Electric Corporation (IEC) (TASE: ELEC.B22) fiber optics venture tender by three months, and notified the investors to that effect. The tenders committee hopes that this will make it possible to complete preparations and solve the problems that caused the postponement, and that potential investors will participate in the tender.
The postponement was made at the request of Sweden's ViaEuropa AB, which said that the tender's preparations were not completed, nor had the government completed the arrangements for transferring IEC assets to the venture. Since ViaEuropa is the only company that has told the tenders committee that it is seriously considering it, and since all other potential bidders have expressed doubts, the committee had no choice but to accede to the request.
It now remains an open question whether ViaEuropa will actually bid in the tender and whether other investors will participate if its conditions are amended. As things stand at the moment, nothing has changed, and investors are not knocking on the venture's doors, and its future depends entirely on ViaEuropa's good will to submit a bid.
In a separate development, sources inform ''Globes'' that Hutchison Telecommunications International Ltd. (NYSE: HTX; HKSE: 2332) meticulously reviewed the IEC fiber optics venture six months ago and decided to forego it under the terms. Following Hutchison's taking back control of Orange franchisee Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), it does not rule out reconsidering the IEC venture as a means for strengthening the mobile carrier. However, Hutchison will take no action until the Partner acquisition is completed.
Partner has a clear interest in the IEC fiber optic network, and will presumably favorably recommend it to its new board of directors. Hutchison Telecommunications is a global mobile and telecommunications infrastructure company, and the IEC venture fits with its strategy.
Published by Globes [online], Israel business news - www.globes-online.com - on August 8, 2012
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