Partner (PTNR) Communications Co. surged to the highest in almost four months on speculation Israel’s second-biggest mobile phone company is close to finding ways to diversify its revenue, potentially boosting profit.
September 19, 2012–Partner advanced 5.9 percent to 19.45 shekels, or the equivalent of $4.98, at the Tel Aviv close, the highest since May 21. The New York shares of the company based in the Israeli city of Rosh Ha’Ayin, fell 0.5 percent to $5.085 yesterday, snapping a five-day rally. Israel’s benchmark gauge, the TA-25 Index, gained 0.5 percent as trading resumed after a three-day holiday. Bezeq Israeli Telecommunication Corp. (BEZQ), the country’s largest fixed-line phone provider, rose 1.1 percent.
“Investors believe Partner is close to signing a wholesale agreement which will allow it to lease infrastructure from Bezeq and provide fixed-line and other services, diversifying revenues,” said Richard Gussow, a senior analyst at DS Securities & Investments Ltd. in Tel Aviv.
Partner’s shares have slumped 47 percent in the past year as the government introduced regulations to boost competition and reduce prices. Israel’s main telecommunications companies, Cellcom Israel Ltd. (CEL), Partner and Bezeq, have been the worst performers on the TA-25 index, respectively, in that period. Partner is cutting jobs and seeking to enter other segments to boost revenue, Chief Executive Officer Haim Romano said Aug. 14.
“Partner is in negotiations with Bezeq about a wholesale service,” the company said in a statement read out over the phone after markets closed…Read More>>