French communications magnate Xavier Niel who owns 30% of Golan Telecom Ltd. along with controlling shareholder Michael Golan have received a proposal to acquire control in mobile operator Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), which they are seriously considering. Sources inform "Globes" that the offer was probably made via the investment bank Lazard.
Troubled IDB Holding Corp. Ltd. (TASE:IDBH) controlled by Nochi Dankner, the controlling shareholder in Cellcom, denies that the mobile operator is up for sale. However, a senior source close to Niel and Golan has confirmed that an offer to buy the company has been made to them and they are seriously considering it.
Over the past year, the possibility that IDB would sell some of the companies it controls due to its dire financial problems has been raised on several occasions. But no sales have emerged in part because of the high prices that IDB has been demanding for its companies including Cellcom, which is one of the main sources of profit for IDB.
Niel owns the French communications group Free. In response to this report Michael Golan said, "No comment."
Cellcom's share price was down 1% on the NYSE today, giving a market cap of $1.1 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on July 29, 2013
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