Finance Ministry says it will oppose Pelephone acquisition of MIRS

14 Oct 2009

According to Globes Online, the Israeli Ministry of Finance is looking to block the sale of Motorola Israel iDEN subsidiary MIRS Communications to Pelephone, itself a subsidiary of fixed line incumbent Bezeq. It is understood that Deputy Budget Director Eran Polak sent a letter to the Ministry of Communications (MoC) asking it, in conjunction with the country’s antitrust authority, to block any sale of MIRS to Pelephone. Both the MoC and the antritust watchdog have previously indiciated that they would oppose any attempted purchase of MIRS by the Bezeq unit, citing competition concerns. With the revelation that the Ministry of Finance will also seek to hinder any acquisition, it looks increasingly likely that Pelephone, much like fellow mobile operators Partner Communications and Cellcom, will pull out of the bidding process.

Israel, HOT Mobile, Ministry of Communications, Pelephone