Analyst Roni Biran is concerned about delays over the Yes merger.
UBS has downgraded its recommendation for Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) from "Buy" to "Neutral" due to regulatory uncertainty. UBS analyst Roni Biran says there could be a delay in releasing Bezeq from the shackles of structural separation as well as a delay in its merger with Yes, and this creates uncertainty over the future of the company.
Biran adds that the entry of Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) to the TV market has resulted in a fierce response from rivals in the mobile phone market and this will hit profitability over the next year and affect the results of Bezeq's mobile carrier unit Pelephone Communications Ltd..
Bezeq's share price was down 1.7% at NIS 6.73 on the Tel Aviv Stock Exchange in early afternoon trading.
Published by Globes [online], Israel business news - www.globes-online.com - on January 7, 2015
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