Second Broadcasting Authority legal counsel Adv. Doron Avni today clarified to the groups bidding for tender of the Channel 2 franchise, that bringing in new investors would not be taken into consideration by the decision making committee. Avni made his position clear to the groups several days ago, following a request submitted to the Authority by Tel-Ad Jerusalem Studios.
Avni wrote: "In recent days, after having received a request from one of the bidders, who is also a current Channel 2 franchise-holder, in which the bidder announced its intention to request, in the near future, permission to transfer or allocate shares to new shareholders, [a move] which would go into effect should it win the tender, we find it necessary to make clear that the Second Broadcasting Authority Council does not intend, at this stage, to examine or discuss the aforementioned request for a share transfer submission."
Tel-Ad, like the other bidders, will be judged according to current group structure, and its request to allocate shares will be examined at the proper time, should Tel-Ad win the tender and the request become relevant.
In light of this decision, sources close to the tender said today that Tel-Ad's announcements about potential new partners (Markstone Capital Partners Fund last week, and Africa-Israel today, at 18% apiece) were effectively meaningless.
However, it should be borne in mind that bringing in new partners is a correct and necessary step for Tel-Ad, that reinforces it significantly, especially given that the other bidders have also brought in new shareholders, some financial investors, others strategic.
Published by Globes [online], Israel business news - www.globes.co.il - on Sunday, January 30, 2005