Bezeq board changes may jeopardise Eurocom-Saidoff deal - report
06 MAR 2018
The fight to appoint three new directors at B Communications, the parent firm for Bezeq, threatens to jeopardize US-Israeli businessman Naty Saidoff's offer to take over Israeli communications company Eurocom, Globesreported citing banking sources.
Bezeq chairman David Granot is attempting to block the appointment of three directors to the board of B Communications, the immediate holding company of Israeli telecommunications firm Bezeq. Eurocom is the ultimate holding of Bezeq.
Bezeq chairman David Granot is attempting to block the appointment of three directors to the board of B Communications, the immediate holding company of Israeli telecommunications firm Bezeq. Eurocom is the ultimate holding of Bezeq.
The Saidoff group has informed the banks that there was a material deterioration in relation to the proposed acquisition. Although Saidoff is not currently planning to withdraw, it warned that things may change if the banks fail to act and Saidoff is unable to make use of the control permit it had for Bezeq, according to the report.
The report said that Eurocom creditors are fully aware of the risks posed to the Saidoff-Eurocom deal should Granot be successful in thwarting the appointments and they are attempting to persuade financial institutions not to support Granot's position.
Link to the original source.
A report in Ha'aretz said Saidoff is looking to block changes to the way Bezeq appoints board members. Bezeq's acting chairperson Granot and the Psagot Investment House have proposed a change to the way Bezeq's directors are nominated. Under the proposals minority shareholders would be allowed work jointly tonominate directors. Saidoff believes this would render any future control of Bezeq meaningless and is seeking an injunction blocking the proposed changes, according to the report.