Group to Buy Israeli Telephone Company
Monday May 9, 5:01 pm ET
Hollywood Billionaire to Buy Controlling Stake in Israel's State-Controlled Telephone Company
JERUSALEM (AP) -- A consortium headed by Israeli entertainment mogul, Hollywood billionaire Haim Saban, on Monday won the right to buy a controlling stake in Israel's state-controlled telephone company, Bezeq, government officials said.
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The Saban group agreed to pay about $1 billion for the 30 percent share of the company, Israeli media reported.
Israeli Prime Minister Ariel Sharon congratulated the Saban group. "Transferring Bezeq to private hands is an important step in moving (Israel) to a competitive and sophisticated economy that will benefit consumers," Sharon said in a statement.
The Israeli government has been trying to privatize the phone company for 14 years. Obstacles have included labor union objections and economic factors, which have delayed or scuttled efforts to sell off other government companies over the years.
Buyers were to receive voting rights that give them control of the company and an option to buy an additional 10.66 percent stake. The state currently holds 46.38 percent of the company's shares.
No official announcement has been made, but the Haaretz daily said the Saban group won when a rival group failed to submit a final bid.
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