Bethel Finance news:
Israeli fixed-line and broadband operator 013 NetVision agreed to enter into discussions with mobile network operator Cellcom regarding a proposed NIS1.5bn (US$421mn) takeover offer. While there is no guarantee that a deal will be completed, CFW regards the common ownership of the two companies and ongoing consolidation in the Israeli telecoms market as clear signs that a merger would inevitably take place.
Early in 2011 the Ministry of Communications allowed mobile network operators (MNOs) to buy and own international long-distance (ILD) operators subject to structural separation arrangements. Israel's MNOs had already been permitted to buy local network operators and broadband providers. Cellcom and Partner Communications had been quick to exploit this opportunity. They are now moving with alacrity into the ILD market, as demonstrated by Partner's acquisition of 012 Smile Communications in early April 2011.
While it seems clear that Cellcom's pursuit of NetVision is motivated by a desire to keep up with its rival in terms of diversifying its business amid faltering growth in the core mobile market, the company has not provided any insights into how it would accomplish the takeover or how NetVision would fit in with the expanded Cellcom business.
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