The state is planning to sell its entire stake in state-owned phone company Bezeq (TASE: BEZQ ), the head of the Bezeq labor union Shlomo Kfir claims.
The allegation was made in a letter Kfir sent to Government Companies Authority General Manager Yaron Jacobs. Kfir said that potential buyers of the phone company are holding secret talks with government officials in order to bypass the restriction on dividend distribution once Bezeq is private, TheMarker has learned.
The new controlling shareholders will be eligible only for dividends on future earnings.
Kfir wrote that in order to circumvent the restriction, the state hopes to offer potential buyers a phased acquisition of its entire Bezeq stake, and delisting Bezeq from the Tel Aviv Stock Exchange.
"We have recently learned that a number of potential bidders for Bezeq hope after the purchase to delist Bezeq from public trade. This would allow the controlling shareholder to "roll" financial liabilities and risks onto Bezeq itself. These moves are in direct contravention of promises made to Bezeq and its employees," Kfir writes.
Kfir also raises the possibility that Bezeq will be merged with another company, or will serve as a fictitious subsidiary.
The ministerial committee on privatization approved an amendment to the regulations governing the sale of the state's holdings in Bezeq. The amendment, initiated by Communications Minister Reuven Rivlin, allows a foreign entity to bid for Bezeq without incorporating in Israel. In addition, the foreign entity does not have to form a consortium including a 20% Israeli partner before the actual sale date.