Haim Saban and Adam Chesnoff held a meeting with

Xavier Niel in Paris.

Sources inform ”Globes” that, last week, Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) executives met French media tycoon Xavier Niel, a partner in Golan Telecom Ltd. and an associate of its owner, Michael Golan.

Partner’s controlling shareholder Haim Saban and chairman Adam Chesnoff met Niel in Paris to discuss various options and opportunities in the Israeli telecommunications market. So far as is known, they did not discuss a possible future merger of the carriers, but the meeting indicates that the carriers’ controlling shareholders realize that the situation in Israel must change, and that the existence of five carriers in an environment of extreme uncertainty, in the structure being prepared by the Ministry of Communications, is impossible.

In the past few months, “Globes” has reported that Niel, one of the strongest men in France’s telecommunications industry, had expressed an interest in acquiring Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) from IDB Holding Corp. Ltd. (TASE:IDBH), when the latter was still controlled by Nochi Dankner. Dankner said at the time that Cellcom was not for sale.

Last week’s meeting reportedly discussed the uncertainty about Cellcom’s future and what IDB’s new controlling shareholders want to do with the mobile carrier.

The meeting in Paris was held against the backdrop of talks between Saban Capital Group Inc. and Hot Telecommunication Systems Ltd. (TASE: HOT.B1) owner Patrick Drahi on the sharing of mobile networks, which is waiting for government approval. Presumably, an agreement on network sharing by the carriers is a first step toward a possible future merger of the carriers, but for now, it seems that the Antitrust Authority and the Ministry of Communications will not permit such a merger.

Golan Telecom said in response, “Golan Telecom does not control or manage Niel’s appointments. As always, the company does not comment on rumors.”

No response was obtainable from Saban Capital Group.

Published by Globes [online], Israel business news – www.globes-online.com – on March 11, 2014