The Israeli Prime Minister has said that Michael Golan is "pulling a fast one on the country," Channel 2 reports.
Another obstacle must be surmounted if Cellcom Israel Ltd.'s (NYSE:CEL; TASE:CEL) NIS 1.7 billion acquisition of mobile carrier rival Golan Telecom Ltd. is to go ahead Prime Minister Benjamin Netanyahu opposes the merger, Channel 2 TV reports. In private conversations, Netanyahu has reportedly said that Golan Telecom CEO Michael Golan has "pulled a fast one on the country" and the deal must not be approved because he has not met his commitments. Netanyahu is also acting Minister of Communications.
Netanyahu has also voiced his opposition to the deal in talks with Finance Minister Moshe Kahlon, who is also against the merger. Earlier this month Kahlon said, "The Ministry of Finance has the authority to halt the sale of Golan Telecom to Cellcom. Golan was granted a frequency in order to create competition, and it is using it to eliminated competition. We'll make sure that there will be competition in the cellular market. We won't let Golan Telecom be sold to Cellcom."
"Globes" has also revealed that the State Comptroller is investigating the allowances that the Ministry of Communications has awarded Golan Telecom.
Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2015
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Benjamin Netanyahu