Gilat Deal In Trouble

August 2008 | Corporate Financing News Alert

The buyout of Israel-based Gilat Satellite Networks by a consortium of private investors ran into trouble on August 25 when the buyers refused to close the deal. Terms of the deal were agreed in March and it was scheduled to close in mid-August. Now Gilat is saying the consortium has decided not to pay the agreed upon price of US$11.40 per share, as the consortium does not believe all the conditions of the deal had been met. The consortium includes Los Angeles private-equity firm Gores Group; Israeli investment firm Mivtach Shamir Holdings; companies affiliated with investors Roy Ben-Yami, Ami Lustig

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