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Accounting Implications of the Supreme Court Ruling in the Matter of the Merger of DBS Satellite Services Ltd. ("yes")

Posted on: Monday, 24 August 2009, 02:21 CDT

TEL AVIV, Israel, August 24 /PRNewswire-FirstCall/ -- Bezeq The Israel Telecommunication Corp., Limited (TASE: BEZQ), Israel's leading telecommunications provider, made the following announcement further to the Company's immediate report on August 20, 2009, regarding the Supreme Court's ruling in the matter of the merger of the Company with yes, in which the Supreme Court accepted the appeal of the Antitrust Commissioner and resolved not to approve the merger:

In accordance with generally accepted accounting principles, and in light of the ruling, the Company will cease to consolidate yes in its financial statements. As a result, the Company will record its investment in yes according to the equity method, based on the fair value of this investment on the date of cessation of consolidation.

The Company estimates, prior to performing an updated valuation of yes and prior to finalizing the examination of all the relevant accounting issues, and based on the information currently available, that it will record a significant one-time profit, estimated at this stage at NIS 1.2-1.4 billion. The Company reiterated that at this stage, the estimate is uncertain and subject to the above qualifications concerning the valuation and the accounting reviews now in progress.

About Bezeq The Israel Telecommunication Corp.

Bezeq is Israel's leading telecommunications service provider. Established in 1984, the company has led Israel into the new era of communications, based on the most advanced technologies and services. Bezeq and its subsidiaries offer the full range of communications services including domestic, international and cellular phone services; Internet, ADSL, and other data communications; satellite-based multi-channel TV; and corporate networks. For more information about Bezeq please visit the corporate website at http://www.bezeq.co.il.

SOURCE Bezeq

Source: PR Newswire

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