“The Bezeq Case: How Involved is Or Elovitch in the Predicament of His Father, Saul?”

About two weeks ago, early in the morning, the Israeli Securities Authority raided the houses of Shaul Elovitch, and his son – Or Elovitch, the Controlling Shareholders at Bezeq, and detained them for questioning. The suspicions in this case are severe, thereby the public company, Bezeq, which is controlled by the Elovitch family, purchased nearly half of the shares of the satellite company, Yes, from Eurocom, which is privately owned by the family, for hundreds of millions of shekels in excess of its worth. Another suspicion is that after the transaction, the cash flow at Yes was manipulated such that the conditions would allow Eurocom to receive part of the payment in the transaction, which h would be contingent on results (more on the transaction to follow).

The criminal investigation began nearly a year and a half after Adv. Ronen Adini filed a derivative claim for the exact same transaction, and using the same claims – that the Bezeq-Yes Transaction was a very poor transaction for Bezeq and very good for Elovitch, at Bezeq’s expense. The plaintiff argued that Bezeq had acquired Yes from Elovitch for an exorbitant price, far exceeding its true value.

Read the full article in Globes