Ben-Tzvi acquisition of Ma'ariv hits snags

Employees claim that the new owner is struggling to meet his commitments to take over the troubled newspaper.

Shlomo Ben-Tzvi's acquisition of "Ma'ariv" is breaking down from all sides. Print and distribution employees and journalists have raised serious concerns that its buyer Shlomo Ben-Tzvi will not be able to meet his commitments to the court to buy the newspaper from the trustees Shlomo Nass and Yaron Arbel.

Ben-Tzvi bought the newspaper in October and committed to take on 1,400 employees - 350 journalists and administrators, 900 in distribution and 70-110 print workers, who will not be employees but will receive work from the newspaper for at least 18 months.

In recent months circulation has nosedived mainly in the periphery and "Globes' understands it is difficult to find "Ma'ariv" in Jerusalem and in the north. There has also been a significant fall of in subscriptions.

Last weekend Ma'ariv's distribution workers petitioned the court through Adv. Galila Hornstein on the grounds that Ben-Tzvi is not conducting talks with them in good faith.

Meanwhile "Haaretz" distributors says that they expect to receive distribution next year.

The print house has been acquired by Amos Maimon for NIS 65 million - NIS 15 million more than Sheldon Adelson's offer. Under the agreement Ben-Tzvi is meant to lease back the print house but the final agreement is yet to be signed.

The journalists too are worried. The journalists committee said, "There is an atmosphere in which nobody is talking to us enough or consulting with us about future plans. We fell there is no good faith in discussions with employees. It's a very unpleasant feeling. They promised there would be a meeting with Ben-Tzvi in which he would set out his vision but that hasn't happened."

Ma'ariv said in response, "There was an order for paper that was delayed. So there was a shortage. The paper has now arrived and we will recommence distribution subject to business decisions. Regarding the deal with Amos Maimon we hope the subject will be solved in the coming days. Regarding the distribution workers talks are being conducted all the time to reach agreement at a market price. With other employees and journalists everything is being coordinated with the committee."

"Haaretz" declined to comment on the report.

The trustees said, "The trustees did not take in employees after the newspaper was transferred to Ben-Tzvi Group. All the employees from the date of the transfer are employed by the buyer, who bears all the costs of their salaries."

Published by Globes [online], Israel business news - www.globes-online.com - on December 4, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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