Ofek is closing down

Company convened 170 workers today to advise of their dismissal after merger talks with Cellcom fell through
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Israeli communications company Eurocom has decided to close down Ofek The New World after talks to merge the subsidiary with cellular carrier Cellcom fell through, TheMarker.com has learned.

Ofek general manager Reuven Segen-Cohen convened its 170 employees Sunday morning to advise them of the decision and explain its background.

Over the weekend Eurocom's shareholders decided that unless talks with Cellcom resumed today, they would pull the plug on Ofek.

Ofek had been established a year ago to compete with state-run monopoly Bezeq in domestic communications. So far its shareholders had invested some $30 million in the company.

Segen-Cohen refused to comment.