Sources inform "Globes" that Dan Bus Cooperative is in advanced talks to take over as operator of the Jerusalem Light Railway from Veolia Transportation Inc. The negotiations are at a relatively advanced stage and Dan and Veolia have already "unofficially" approached the Ministries of Finance and Transport to receive a pre-ruling regarding the change.
The deal between Dan and Veolia would also involve a broader strategic cooperation between Dan, which operates bus lines in the Greater Tel Aviv area and Veolia, which operates bus lines in Israel through Connex.
Veolia owns 5% of CityPass the Jerusalem Light Rail's franchisee and under the deal it would sell its holding to Dan. CityPass's other shareholders are Ashtrom Properties Ltd. (TASE:ASPR) (27.5%), Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) (20%), Polar Investments Ltd. (TASE:PLR) (17.5%), Israel Infrastructure Fund (10%), and Alstom SA (20%).
Veolia has reportedly come under heavy pressure from pro-Palestinian groups to withdraw from the project.
If Dan were to become the operator of the Jerusalem Light Rail, it would result in intense competition with old rival Egged Bus Cooperative, which operate the city's bus lines.
Published by Globes [online], Israel business news - www.globes-online.com - on September 8, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009