The court advised Sigma Wave to withdraw its bid in view of the support for Valley Telecom by Alavarion’s employees and secured creditors.
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/ By Shiri Habib-Valdhorn and Gad Perez /
On Wednesday, Tel Aviv District Court Judge Eitan Orenstin advised Sigma Wave Ltd. to withdraw its offer to acquire Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) in view of the support for Valley Telecom Ltd., headed by Jorge Pinievsky, by the company’s employees and secured creditors. Valley Telecom will pay NIS 38 million ($10.4 million) by the end of 2014, and promised to employ 48 employees under their employment terms before Alvarion went into receivership. This is most of the company’s employees.
The court reheard the case on Wednesday, after Alvarion receiver Yoav Kfir held a second auction for the company, in which the bidders substantially raised their offers for it.
The attorney for most of Alvarion’s employees said that they were confident that the company would recover. “The employees congratulate Valley Telecom on its win, ” he said.
Valley Telecom’s initial offer was just NIS 1 million ($273K) ; its final offer was a substantial improvement. If Alvarion reaches a creditors settlement, Valley Telecom will pay an additional NIS 6 million ($1.65 million) . The receiver will be issued 15% of Alvarion’s shares, which will be sold at a later date for the benefit of the creditors.
Kfir told “Globes” that there was a substantial improvement in the offers, to the benefit of Alvarion’s creditors. “I hope and expect that the company will continue to operate and succeed, ” he said. He is now dealing with Alvarion’s appeal against the delisting notice it received from Nasdaq.
Sigma Wave said in response, “Sigma Wave has agreed to the court’s request to withdraw its motion, in order to complete the auction by Rosh Hashana, and to allow the immediate operation of the company for the good of the employees and creditors.”
Published by www.globes-online.com