The shares of NASDAQ-traded Amdocs fell on Friday. It is not clear
whether the development was related to the fact that the company’s name had
been mentioned in connection with allegations that Israel had been tapping
the phone lines of US Administration officials.
Amdocs’ share fell 2.92% to $70 and $1,116 at the close of trading on
Friday, having risen $025 on the previous day. Turnover was low, with
330,900 shares changing hands on Friday, compared with 844,500 on Thursday.
This may indicate that investors were in no rush to sell off the share in
the wake of the press reports.
Amdocs’ real test will be tomorrow, the first day of trading following
the publication of the allegations.
Israeli sources assessed yesterday that allegations that Israel was
tapping US Administration phone lines were “a storm in a tea cup”. According
to the same sources, the accusations were removed from the agenda after two
senior Federal Bureau of Investigation officials stated that a year-long
investigation failed to produce evidence against Israel.
The publication of the allegations, first in “Insights”, a periodical
affiliated with right-wing daily “Washington Times”, and then by Internet
newspapers, notably “Drudge Report”, caused grave discomfort to Israeli
circles in Washington.
”Insight” said the allegations were based on dozens of sources, including
intelligence sources. According to “Insight”, the FBI is convinced that
Amdocs equipment has been used to break into the White House telephone
system.
The denial by two senior FBI officials, highlighted by the “New York
Times” and other media, refuted the report of “Insight”, which is known for
its hostile reports with regard to the Clinton-Gore Administration.
”An intensive investigation has been conducted. There simply were no
facts to corroborate the allegations that the Administration’s phone system
has been broken into”, one source said.
Mark Regev, the spokesman of Israel’s Embassy in Washington, told
“Globes”: “Israel is not spying in Washington”. He said that the
accusations were scandalous, adding “I don’t even listen in on my wife’s
phone calls”.
Amdocs’ spokesman Dan Ginsburg said that the company was not aware of the
FBI investigation. “We welcome the opportunity to cooperate with the
investigators or with any investigation whatsoever. We haven’t been
contacted by the FBI or any other US government agency”, he said.
Published by Israel's Business Arena on 7 May, 2000