Israeli operator Partner Communications has snubbed an offer from Hot Telecom and approached Golan Telecom with a view to acquiring it, Globes reported citing sources. Cellcom Israel is already in talks to buy Golan Telecom and a bidding war could develop, it added. Golan Telecom is owned by Electra Consumer Products, has about 1 million subscribers, and is profitable.
Golan Telecom shares a network with Cellcom, making it necessary to break up that partnership in any merger with Partner. Golan Telecom might also be required to pay a ILS 600 million fine to Cellcom. Partner's bid to buy Golan Telecom follows a decision by its board to explore every option, after Hot's offer to buy Partner.
The feeling at Partner, said Globes, is that it is better to acquire another company than to be acquired. Partner is in the middle of major investments and has relatively little debt, making it worthwhile to grow at the expense of another company rather than vice-versa. Partner is a public company and is required to respond formally to Hot's offer. Globes said that will probably happen in several weeks after other options are considered.
