Israel’s Bezeq warns it may have to cut value of subsidiaries

TEL AVIV (Reuters) – Bezeq Israel Telecom <BEZQ.TA> said on Tuesday it may have to reduce the valuations of its subsidiaries or their activities as part of a review it’s doing for its annual financial report.

The company said it was considering referring to its own activities along with those of its television unit YES and its subsidiary Bezeq International as one unit instead of three.

Treating them as three separate units could require the company to substantially write down the value of YES along with a reduction in the company’s net profit and shareholders’ equity.

“On the other hand, treating these activities as one cash generating unit is expected to result in a significantly smaller reduction in the value of YES,” Bezeq said in a statement.

Bezeq said it has not yet carried out the evaluation and has not completed its accounting review.

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