Bid to sell shares in Israel Telecommunication Corporation fails due to lack of interest from foreign investors
The tender of 156 million of the state's shares in Bezeq, i.e. 5.7 percent of Israel Telecommunication Corporation's share capital, failed on Wednesday. Bezeq stated late Wednesday that NIS 298.4 million worth of orders were received, but the state had hoped to raise NIS 770 million from its offer for sale.
Foreign investors were prominently absent. They had been expected to take up to $100 million, Haaretz reported. The party responsible for luring the foreigners was investment bank UBS, which took orders abroad.
GCA director-general Eyal Gabbai attributed the lack of response from foreigners entirely to political tensions.
Wednesday's flop means that foreign investors are not interested in participating in the acquisition of the controlling interest in Bezeq later this year, and it will hinder the company's privatization, Globes reported. Nevertheless, the state has managed to sell 10% of the company, mostly to foreign investors in off-floor transactions. (menareport.com)
© 2004 Mena Report (www.menareport.com)