Court issues injunction against Merrill Lynch, IBI sale of Bezeq shares

Jerusalem District Court today issued an injunction against the Government Companies Authority taking any action relating to IBI or Merrill Lynch selling Bezeq shares.

The petition for the injunction was filed by Gmul and Leader DS, the companies defeated in the tender for distribution of Bezeq shares. Merrill Lynch is the state's advisor on Bezeq's sale, and is now interested in distributing Bezeq shares at attractive prices. These prices will not necessarily be in the best interest of the state. Gmul and Leader argue that serving as both advisor and distributor constitutes a conflict of interest.

The bidding groups in the final phase of the tender were Leader DS and Gmul, and IBI and Merrill Lynch, and Gmul and Leader say they complained before the tender closed that it is unreasonable for Merrill, as the state's Bezeq privatization advisor, to counsel the state to choose itself as the distributor of the shares.

The minimum price for Bezeq has been set at NIS 6.08 per share, which comes to minimum sale price of NIS 305 million.

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