Hutchison terminates deal to buy Partner Communications

Hong Kong conglomerate Hutchison Whampoa Ltd said on Tuesday one of its units and a subsidiary of the Li Ka Shing Foundation had terminated a deal to buy a stake in Israel's Partner Communications Co Ltd.

Golan Hazani, Reuters|Published: 08.21.12 , 11:36

In a statement on Hutchison's website, the ports-to-telecom conglomerate said the two entities had terminated a deal to acquire an aggregate 75 percent stake in Scailex Corporation Ltd from Suny Electronics Limited. Scailex owns 44.5 percent of the share capital of Partner Communications.

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Hutchinson - in a letter to Scailex - lists some of the reasons behind the termination of the deal which probably has to do with the discovery of new information about the company.

Ilan Ben Dov, a controlling shareholder of Partner Communications via his stake in Scailex, was disappointed by the news. He will try to convince Hutchison to pull back its decision and may demand compensation if Hutchinson sticks to the termination of the deal.

According to the terms of the deal Hutchinson agreed to pay $125 million for 75% of Scailex stock. The deal would have left Ben Dov's Suny Electronics with a 3% share in Scailex stock leaving Ben Dov with a minor holding in Partner Communications.

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