Sources inform "Globes" that the Antitrust Authority has contacted Electra Consumer Products (TASE: ELEK) and Gil Sharon, who is responsible on the latter's behalf for the NIS 350 million acquisition of Golan Telecom Ltd. According to the sources, the Antitrust Authority is demanding to see the e-mail correspondence between Electra Consumer and Sharon. No investigation is involved yet, and the Antitrust Authority has not summoned anyone to answer questions.
The sources added that the Antitrust Authority will confine its demand for e-mails to the acquisition deal and specific dates; Electra Consumer and Sharon have been required to deliver only material relevant to the Golan Telecom acquisition, not their entire mailbox.
"Globes" yesterday reported that the acquisition was being delayed due a Gil Sharon interview on Galei Tzahal (Army Radio) a month ago following the acquisition deal, which raised concern about coordination of prices. The Antitrust Authority did not like the interview, to say the least, and asked for a great deal of information about the deal. It now emerges that the probe is focusing not only on Sharon, but also on Electra Consumer, on whose behalf he led the deal. Sharon is slated to become active chairman of Golan Telecom after the acquisition is completed.
Sharon also told Galei Tzahal, "I think that prices in Israel are extremely low, and the surfing volumes given to customers are very large. Current prices are the lowest in the Western world. NIS 30 including VAT, which is less than $10 a month, is not a reasonable price that companies can live with in the long term, even the large companies in the sector, which are now not actually making money on cellular services."
One of the options being considered by the Antitrust Authority is temporarily barring Gil Sharon from any official position in Golan Telecom, but it still depends on the results of the proble.
Published by Globes [online], Israel Business News - www.globes-online.com - on February 14, 2017
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