Bezeq extends pact: Bezeq The Israeli Telecommunication stock stays 17.97 percent below high

Bezeq The Israeli Telecommunication (ISIN IL0002300114) was at ILA 749.50 on the Tel Aviv Stock Exchange on October 8, 2026, 17.97 percent below its 52-week high of ILA 913.60. The stock's latest corporate development was a 45-business-day extension of its memorandum with Telecom Italia Sparkle, approved on September 14, 2026, while MarketScreener listed an average target of ILS 8.55 and a last close of ILS 7.54.

Three dated operating milestones

On May 13, 2026, Bezeq reported first-quarter core revenue of NIS 2.03 billion, up 2.6 percent year over year, and free cash flow of NIS 455 million, up 74 percent, in its investor-relations release. The release also showed 3 million homes passed by fiber and 1.04 million fiber subscribers.

At the Citi Global TMT Conference on September 8, 2026, management described a possible Bezeq and yes structural merger as an upside item outside its medium-term targets. As Investing.com reported on September 8, 2026, management linked the potential merger to an ILS 1.2 billion tax asset and possible free cash flow growth of 20 percent to 25 percent or more.

On September 14, 2026, the board approved extending the Telecom Italia Sparkle memorandum by 45 business days. As MarketScreener reported, the parties had made progress on the principles and continued negotiations on a detailed agreement.

What does the merger mean for cash flow?

The potential yes combination matters because the ILS 1.2 billion tax asset is separate from Bezeq's existing operating targets. Management said the asset could add 15 percent to free cash flow annually over eight years, before savings from duplicate technicians, call centers, information technology and general overhead.

The operating base already provides a measurable comparison. In the first quarter of 2026, Bezeq's reported revenue was NIS 2.169 billion versus NIS 2.235 billion a year earlier, while adjusted net profit reached NIS 300 million versus NIS 288 million. Free cash flow rose from NIS 262 million to NIS 455 million, although the company said a tax refund and working-capital changes supported that increase. These figures come from Bezeq's first-quarter release dated May 13, 2026, Bezeq.

Stock remains below its yearly high

The Tel Aviv quote of ILA 749.50 on October 8, 2026 stood below the ILA 913.60 52-week high and above the ILA 625.10 low. Market capitalization was ILA 20.7 billion on October 8, 2026, giving the merger discussion a market-value context.

Bezeq's core case therefore combines fiber monetization, cash generation and possible structural savings. The cable memorandum remains an extension rather than a completed transaction, so the 45-day period marks continued negotiation rather than final project approval.

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