The Israel Securities Authority (ISA) has announced that it commenced an overt investigation into Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) this morning. The investigation concerns suspected violations of the Securities Law and criminal law in relation to transactions involving the controlling shareholder, Shaul Elovitch. ISA investigators raided Bezeq’s offices and detained senior Bezeq executives for questioning overnight, Elovitch among them

The ISA investigation follows exposés of party-at-interest transactions between Elovitch’s Eurocom group and Bezeq itself: the merger of satellite broadcaster Yes into Bezeq, the accompanying tax settlement, and further payments that Eurocom collected after compelling Yes to freeze payments to suppliers in order to create a situation in which Yes would meet conditions enabling Eurocom to receive more money – NIS 140 million for Shaul Elovitch, to be precise

Published by Globes [online], Israel business news – www.globes-online.com – on June 20, 2017