Israeli telco Bezeq is leasing out its broadband infrastructure to rival Partner Communications, in the hope that the agreement will loosen the antitrust regulator’s objections to the Yes merger.
In a statement issued by Bezeq today, the company said…
Israeli telco Bezeq is leasing out its broadband infrastructure to rival Partner Communications, in the hope that the agreement will loosen the antitrust regulator’s objections to the Yes merger.
In a statement issued by Bezeq today, the company said that the lease agreement “could, in certain scenarios (which are not certain) allow the company’s controlling shareholder regulatory reliefs relating to restrictions imposed by the Antitrust Commissioner on [Bezeq’s parent company] Eurocom, concerning continuation of its holdings in Yes.
“The result of these reliefs, if granted, might be considered a personal interest of the controlling shareholder in making the agreement with Partner.”
Bezeq already owns a 49.8% stake in satellite TV operator Yes, but has been attempting to merge the companies. The deal, which would enable Bezeq to offer triple-play TV, phone and internet services, has been blocked by the antitrust commissioner in recent years on monopoly grounds.
However, as last month’s TelecomFinance reported, a number of analysts said they expected a merger to be allowed next year.
“I think Bezeq will buy the remaining stake in Yes,” said an analyst with knowledge of the companies. “I expect it will happen next year.”
