UPC asked Discount to inject cash into Tevel without diluting UPC stake

Dutch company United Pan-European Communications (Nasdaq:UPCOY, ASE:UPC), which holds 46.5% of Tevel, asked cash-starved Tevel¿s other shareholder, Discount Investment Corporation (TASE: DISI ), to inject capital into the cable television company as part of an interim agreement to a new credit line without diluting the UPC stake.

Another meeting between the shareholders is expected in Holland in the next few days in which Discount managers are expected to clarify for UPC that such a request is unacceptable.

Discount wrote off NIS 200 million in its most recent financial reports on its Tevel investment and will be willing to inject cash into the company only under a number of conditions, the most prominent of which is a dilution agreement with UPC.

Discount Investments recently announced willingness to inject NIS 50 million as part of an interim agreement with the banks on a further credit line.