Haim Saban is not long term Partner investor

Gad Perez

If an agreement to buy Partner is not concluded relatively swiftly, it is safe to assume that the deal will not be completed.

It is not difficult to guess why Haim Saban believes that a deal for cellular operator and Orange franchisee Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) will be profitable for him. Like all Israel's telecom company stocks, Partner's share price is far from its peak, while Saban has sensed changes in the market's structure as well as the streamlining being carried out. He feels that these will do the trick and he can see a reasonable return on his investment over the medium term.

Saban is not a long term player. Thus at the right price it is worth his while investing in Partner. However, as the days go by and the price rises, the potential profit in the deal will fall. So if an agreement is not concluded relatively swiftly, it is safe to assume that the deal will not be completed.

Fair treatment from the regulator

It is somewhat presumptuous to believe that Saban will know better how to manage Partner than its current controlling shareholder Ilan Ben-Dov. This is not the same as Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ), which Saban bought knowing that it was a government telecom monopoly about to undergo a streamlining that would yield results. Partner, as in any market sector, is streamlining because it has to. Saban's management value is in creating peace of mind and confidence for investors who know that the company is in safe hands. That role is currently being played by Partner CEO Haim Romano who has succeeded in distancing Ben-Dov's troubles from the daily management of the company.

Saban believes that he will receive fairer treatment from the regulator if he holds a controlling interest in Partner, as happened when he invested in Bezeq after Yaacov Gelbard departed as CEO to be replaced by Avi Gabbay. Saban's status in the eyes of the decision makers is different. He won't whine about what he has been bequeaths or beg for the market to be redressed to repair the damage done to him during Moshe Kahlon's term of office as Communications Minister. He will know how to elegantly articulate what is important for the cellular market and the four groups competing in it: a competitive wholesale market, the possibility of mergers, easements in cooperation over sites, and setting up joint networks.

Published by Globes [online], Israel business news - www.globes-online.com - on October 14, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

Gad Perez  illustration: Gil Gibli Israel narrows the telecoms gap

Recent events mean the laggard Israeli telecommunications market has turned a corner, but the delays have been costly.

Gad Perez  illustration: Gil Gibli Cellcom moves to scupper Partner-Hot merger

The regulators will not allow more than one merger in Israel's telecommunications market, and so Cellcom's talks with Golan Telecom have a double aim.

Gad Perez  illustration: Gil Gibli Israelis are already winners from the fiber optic venture

However things play out in the market, the competition from Via Europa and Cisco means a great leap forward for our telecomunicaions infrastructure.

Gad Perez  illustration: Gil Gibli TV prices won't fall like mobile prices

The TV market cannot be compared to the mobile market, which was making excessive profits, while Hot and Yes both lose money.

Gad Perez  illustration: Gil Gibli Have no optic illusions

The investors in Israel Electric Corporation's fiber optic cable venture will need deep pockets and strong nerves.

Gad Perez  illustration: Gil Gibli Golan Telecom's prices are unsustainable

Telecommunications market sources are convinced that the price reduction is the mobile carrier's death rattle.

Gad Perez  illustration: Gil Gibli Ministry's excuses on 4G delays ring hollow

As far as promoting 4G technology, for the benefit of the industry and country, and dealing with the issue of antenna are concerned, the Communications Ministry has recorded a resounding failure.

Gad Perez  illustration: Gil Gibli Haim Saban is not long term Partner investor

If an agreement to buy Partner is not concluded relatively swiftly, it is safe to assume that the deal will not be completed.

Gad Perez  illustration: Gil Gibli Cisco's fiber optic conflict of interest

Sweden's ViaEuropa may bring in Cisco Systems as a partner with a small stake in the IEC fiber optic venture.

Gad Perez  illustration: Gil Gibli Cellcom throws down the gauntlet

There is no question Cellcom's rivals must respond to their new plan, because this is no ordinary marketing move.

Gad Perez  illustration: Gil Gibli Golan Telecom a worthy winner

In the end, the most professional bidder won the mobile carrier tender.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018