The Safra group and US corporation BellSouth (NYSE: BLS), the controlling shareholders in Cellcom, together with Discount Investment Corporation, today decided to appoint Dr. Yitzhak Peterburg as president and CEO of Cellcom, effective as of January 1, 2003.
Peterburg, a doctor, was head of Clalit Health Services until several months ago, and had previously led the Soroka Medical Center in Beer Sheva. Jacob Perry, CEO of Cellcom since 1995, announced he would leave the company at the end of this year.
How Cellcom deputy CEO and VP marketing Oren Most will respond to Peterburg’s appointment is unclear. As reported in “Globes”, Most is considering his position; he has been mentioned as a possible CEO for the Ma’ariv group.
The Cellcom shareholders originally planned the appoint Peterburg COO, with a CEO above both him and Most. Most probably would have resigned, since it would have diminished his status in the company. It is unclear what course he will choose now, since his status has not been affected.
Sources inform “Globes” that the shareholders have proposed that Most remain in his current position. Most was unwilling to respond today.
The shareholders jointly announced, “We are very glad that Dr. Yitzhak Peterburg, one of Israel’s most prominent business managers, has agreed to lead Cellcom. During his entire business career, Peterburg has demonstrated a deep commitment to customer service, and a unique ability to understand complex market dynamics, and respond to them.
”We think these talents are of crucial importance, and we are convinced and confident that Peterburg will strengthen Cellcom’s status as the leader of Israel’s wireless industry.
Confidants of Cellcom chairman Shlomo Piotrkowsky told “Globes today that Perry was not ousted from his position. They did not comment on the belief in the communication sector that Piotrkowsky himself will leave his position in the company at the end of the year. They also rejected the assertions that Piotrkowsky is responsible for the difficulties of Safra and BellSouth’s cellular venture in South America.
Published by Globes [online] - www.globes.co.il - on December 15, 2002