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May 12, 1995 - Image 53

Resource type:
Text
Publication:
The Detroit Jewish News, 1995-05-12

Disclaimer: Computer generated plain text may have errors. Read more about this.

-4.1k1A*04.110.1..0110.0.00000.14._

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a) E

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MEMOS

Do you have an item for "Memos"? Please
send it to Steve Stein at The Jewish News,
27676 Franklin, Southfield, MI 48034. A
picture would be appreciated. It can be col-
or or black-and-white, but it must be in fo-
cus. Ifyou wish to have the picture returned,
you must enclose a self-addressed,
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The mystery remains. Was it, or
was it not, Cable and Wireless
(C&W), Britain's second-biggest
telecommunications company,
that bought a 4.7 percent stake
in Israeli telecommunications
firm Bezek Past month?
Cable and Wireless's cagey "no
comment" suggests that it prob-
ably was.
There is plenty of logic to the
move. Lord Young, C&Ws chair-
man, has been a frequent visitor
to Israel of late. He has stated
openly that C&W is interested in
becoming a player in the Israeli
telecommunications market.
He has even advised the Israeli
government on privatization and
thinks it is moving too slowly.
So it would not be terribly sur-
prising if he was behind the
provocative purchase.
If G&W was the buyer, it is one
of the more interesting develop-
ments in recent Israeli corporate
and capital market history.
It would mean that one of the
world's telecommunications gi-
ants, a company with a growing
spread of international interests,
including in the Arab world, is ef-
fectively stating that it is inter-
ested in at least a strategic stake
in — and very possibly control of
—Bezek.
And that statement is not via
some press release or cheap talk,
but via an aggressive, anonymous
stock-market purchase.
Had an unnamed buyer
bought a stake of close to 5 per-
cent in British Telecom, or
Deutsche Telekom (were it pub-
licly traded), the governments of
those countries most likely would
be looking at least to know the
identit77 of the buyer.
The israeligovernment's ap-
parent indifference to the share
purchase is therefore puzzling.
There is nothing wrong with
C&W buying the stock or indeed
taking control of Bezek should
things so unfold.
But it is indicative of how lit-
tle the Israeli government un-
derstands the capital market that
it seems barely aware of the de-
velopment. ❑

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NEIL COHEN
SPECIAL TO THE JEWISH NEWS

0

TITAIMMI

Stock Purchase
Could Be Historic





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le HAPPY IF
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BARBARA GOLDS

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Love Always
Your Son,
Danny

) ) •

C)
C)

53

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