15.07.2011                      13.Tammus, 5771

Mobilfunk:

Fifth cellular company still off the hook: Cellact unable to come up with NIS 700m in guarantees

The failure of Marathon and Cellact to come up with the guarantees represents a serious market failure of the Israeli economy: Over-concentration of economic power in the hands of a few.

Is Michael Gelfand’s Cellact also out of the race to become Israel’s fifth cellular operator? Similar to Hezi Bezalel’s Marathon Mobile, Cellact also has been unable to come up with the NIS 700 million in bank guarantees it needs to put up to meet the Communications Ministry’s tender.
Cellact representatives met with members of the tenders committee this week, and the company has complaints about the terms of the tender. It is unable to find an Israeli bank willing to provide the guarantees, even though the owners of Cellact are willing to put up 50% of the amount in cash….