Belnikov turned down Cellcom CEO job after NY meeting with Safras

Apparently due to pressure from present boss Eliezer Fishman. VP Oren Most likely to stay for the moment

Author:: TheMarker.com Staff
Publish date:: Apr 29, 2002 11:59 AM EDT

Jacob Perry has agreed to continue serving as president and CEO of cellular providerCellcom until further notice.

The board today asked him to postpone his May 1 resignation. "Given the economic situation and the challenges lying ahead for Cellcom in the coming period," the board said.

This at least temporarily ends speculation on Perry's replacement. Many names had been mentioned, among them Super-Sol (NYSE:SAE) CEO Amiaz Sagis, Ram Belnikov, designated to head the planned merged cable firm, Shlomo Liran, CEO of satellite TV firm YES, and Cellcom VP Oren Most.

TheMarker has learned that Golden Lines CEO Ram Belnikov and Cellcom chair Shlomo Piotrkowsky had an agreement on Belnikov¿s appointment up until a few days ago. Belnikov even traveled to New York last week to meet with controlling shareholders Joseph and Moise Safra. However, upon his return, Belnikov informed Cellcom that he was rejecting the offer, leaving the board with a complex problem. Perry was scheduled to step down this week but the company had no new CEO or even serious negotiation with a candidate. In this situation, the board decided to ask Perry to continue and he agreed. Sources close to the negotiations estimated that Belnikov rejected the offer under pressure from his present employer Eliezer Fishman.

Company sources said that Cellcom shareholders didn't consider Most's nomination ideal, and that the shareholders were looking for another candidate. After failing to locate a candidate, the shareholders asked Perry to extend his tenure. Sources close to Most estimate he will remain in the vice president¿s office for the moment.

Cellcom announced in April that Perry was stepping down. Sources close to the company estimated that Perry wanted to leave for three main reasons. First, it has been three years since senior executives, including Perry, received bonuses for remaining with the company that had been allocated to them. Secondly, the sources believed that Perry would want to leave the company at its peak, and thirdly, the tense relationship between Perry and Chairman Shlomo Piotrkowsky. Also mentioned is Cellcom's entry into the domestic calls market, the local multipoint distribution system market. The managment was in favor, but shareholders prevented this.