The board of directors of mobile carrier Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) is considering a rights offering to raise NIS 120-150 million.
The company said that it has yet to file with the US Securities and Exchange Commission (SEC) or seek the approval of the Israeli Securities Authority.
However, sources inform "Globes' that Discount Investment Corporation Ltd. (TASE:DISI) (DIC) CEO acting general manager Michel Dahan opposes such a rights offering. DIC is Celcom's parent company.
Cellcom added that following the voluntary retirement plan it announcedlast month, it expects to record a one-time expense of approximately NIS 25 million in the second quarter of 2015.
This latter report raises the likelihood that like Israel's other veteran mobile carriers, which are struggling in this intensively competitive market, Cellcom could swing to a loss in the near future.
In any event, any rights issue if it goes ahead will be a test of investors' confidence.
Published by Globes [online], Israel business news - www.globes-online.com - on June 2, 2015
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