The confrontation over control of the board of directors of Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) has become sharper, with the Saidoff group notifying the banks that there has been a material deterioration in the deal, as defined in its agreement with them.
The Saidoff group still does not intend to withdraw from the deal, but it is signaling that it expects the banks to act, and that they should be aware of the consequences should the group withdraw in the event that it is unable to realize the control permit it has been given for Bezeq. Sources inform "Globes" that the meeting of the board has again been postponed, and that it is now due to take place on Thursday.
The banks find themselves helpless, and unable to deal with the situation that has arisen on the Bezeq board, a senior banking source told "Globes". He said the banks had no influence on what happened on the board, and that they were aware of the fact that if incumbent Bezeq chairman David Granot should succeed in thwarting the appointment of the three new directors of Bezeq's immediate holding company B Communications (BCOM), Saidoff's deal for the acquisition of Bezeq's ultimate holding company Eurocom would be in at risk.
The banks' concern has been translated into attempts to persuade the financial institutions not to support the position of Psagot, Granot, and director Zeev Wurmbrand. As far as the banks are concerned, a breakdown of the deal at this stage will have far-reaching consequences, and they will presumably do everything in their power to prevent it.
The parties are expected to meet in an attempt to reach understandings. It is fairly clear that if Granot tries to prevent the appointment of the three B Communications directors to the Bezeq board, the control battle will worsen. Sources at B Communications say they find it hard to believe that Granot will make the election of the new directors conditional on the resignation of the directors from the Elovitch family beforehand.
Published by Globes [online], Israel business news - www.globes-online.com - on March 5, 2018
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