Bloomberg News

Discount Investment, Scailex Drop as Wireless Unit Shares Plunge

May 16, 2012

Discount Investment Corp. (DISI) and Scailex Corp. Ltd., the owners of Israel’s two largest mobile-service providers, fell as their wireless units plunged amid competition concerns.

Discount Investment shares tumbled 17 percent to 11.95 shekels at 1:02 p.m. in Tel Aviv, the lowest level since Jan. 1995 when the shares listed in Tel Aviv. Discount has a 47.04 percent stake in Cellcom Israel Ltd. (CEL:US), according to data compiled by Bloomberg. Scailex shares fell 23.8 percent to 10.40 shekels. Scailex holds a 44.54 percent stake in Partner Communications Co. (PTNR), Israel’s second largest mobile provider.

Cellcom declined 7.6 percent to 34.65 shekels, the lowest level since July 2007 when the shares were listed on the Tel- Aviv Stock Exchange, bringing its three day drop to 20 percent. Partner dropped 7 percent to 21.95 shekels, bringing its three day drop to 17 percent.

Golan Telecom Ltd. and Hot Telecommunication System Ltd. (HOT) said on May 14 they will start offering mobile-phone services offering unlimited packages, competing with the packages offered by Cellcom, Partner Communications Co. and Bezeq Israeli Telecommunication Corp. (BEZQ)

Suny Electronics Ltd. (SUNY), an importer of mobile phones, which has a 78.71 stake in Scailex, according to Bloomberg data, dropped 15 percent today.

To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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Companies Mentioned

  • CEL
    (Cellcom Israel Ltd)
    • $12.19 USD
    • -0.16
    • -1.31%
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