Golan Telecom Mulls Stay-of-Proceedings

YERUSHALAYIM -

Golan Telecom was on the verge of requesting a stay-of-proceedings and the appointment of a receiver in view of the likely decision by the Israel Antitrust Authority to block its merger with Cellcom Israel as of Monday, Globes reports.

Golan Telecom declined to comment on the matter.

A receivership would help calm the market until the company’s future becomes clearer, analysts say.

Golan claims unsustainable losses because of the NIS 21 million it must pay every month to Cellcom for use of its network, higher than in previous years, compounded by a stagnant subscriber base.

The dire financial situation has led Golan to plead with the Israel Antitrust Authority to let the merger with Cellcom go ahead. Golan has also written to Prime Minister Binyamin Netanyahu and Minister of Finance Moshe Kahlon warning that they would be to blame if Golan collapses due to the blocking of the merger.