Tel Aviv District Court Justice Dr. Dafna Avnieli today issued a temporary injunction against Golan Telecom Ltd. at the request of Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL). The injunction freezes the agreement signed by Golan Telecom with HOT Mobile Ltd..
The judge accepted Cellcom's plea that the agreement constitutes a violation of Cellcom's agreement to acquire Golan Telecom. The judge ruled that the agreement was a substantive one.
"Golan Telecom's argument that it felt exploited and restricted by the draconic terms of its agreement with Cellcom does not give it the right to violate that acquisition agreement," the judge ruled. "The respondent's agreement with HOT Mobile constitutes a breach of the acquisition agreement for all intents and purposes."
The injunction is designed to freeze the legal rights of Cellcom and Golan Telecom until a court rules on the dispute between them. The judge ordered Cellcom to deposit a NIS 200,000 bond to cover possible damage to Golan Telecom if the court eventually rules in the latter's favor in the dispute. Golan Telecom was charged NIS 25,000 in court costs.
Advocates Zvi Agmon, Mattan Meridor, and Meirav Yung of the Agmon & Co. Rosenberg Cohen & Co. law firm represented Cellcom.
Published by Globes [online], Israel business news - www.globes-online.com - on July 21, 2016
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