Israeli Firms in Talks on ISP Unit Merger - Matav Cable Systems Ltd.; Netvision Ltd - Brief Article

ISP Business, May, 2001

Matav Cable Systems Media Ltd., an Israeli provider of broadband cable television services, said it is in talks to merge its independent services provider unit with Netvision Ltd., another Israeli ISP provider.

Matav, one of Israel's three cable TV providers, serving roughly one-quarter of the population, said it is in preliminary stages of talks of merging its ISP business NonStop Internet 1999 Ltd. with Netvision. Terms of the deal have not yet been determined.

If the deal is completed, Matav said it would acquire 50 percent of the shares of Netvision from Elron Electronic Industries Ltd., and Netvision would acquire all of the shares of NonStop. Matav currently has about 13.6 million shares outstanding.

The company said Tevel Israel International Communications Ltd., which currently holds 50 percent of Netvision shares, and Matav would equally hold the combined entity, if the deal is completed.