The Zeevi group has decided to stop stalling a public offering by the

Bezeq

phone company to finance severance packages, TheMarker.com has learned.

Bezeq wants to float newly issued shares on the Tel Aviv Stock Exchange to finance staffing cutbacks ahead of its privatization.

But the group headed by Gad Zeevi blocked the move to prevent dilution of its 20% stake in Bezeq equity. Zeevi had agreed to financing being obtained through a private placement, but had sought to prevent a public issue.

Now Zeevi agrees to the secondary offering, contingent however on the issue being held after the state publishes a tender to sell its stake in the national phone company.

Bezeq employees also threw a stake into the wheel of the privatization, objecting to steps being taken until their rights are assured.

The general manager for the Government Companies Authority, Yaron Jacobs, cannot be reached for comment at this time.