In telecoms, Partner Communications, /quotes/comstock/15*!ptnr/quotes/nls/ptnr (PTNR 19.25, -0.50, -2.53%) the Israeli affiliate of the Orange cellular network, fell 1.4%.

Sources told Globes that Partner is in preliminary talks to acquire control of Smile Communications from closely held Israeli holding company Eurocom Group.

Shares of Smile, /quotes/comstock/15*!smlc/quotes/nls/smlc (SMLC 11.32, -0.71, -5.90%) an Israeli provider of broadband and traditional voice-communications services, fell 0.3%.

Such an acquisition "would provide a springboard for Partner to enter fixed-line telephony, international calls and [Internet-service-provision] markets," while Eurocom's controlling holder, Shaul Elovitch, could make an effort to take over Bezeq, Leader said.

Elovitch had been one of a number of bidders who had tried to acquire a controlling stake in Partner from Hutchison Telecom. /quotes/comstock/13*!htx/quotes/nls/htx (HTX 3.26, +0.03, +0.93%) Hutchison ultimately agreed to sell the stake to Scailex Corp., which imports Samsung mobile phones into Israel.

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Also note- Oppenheimer lowered it's rating on Smile this AM.