Gilat 2Q profit falls on weak Colombian market

_ Israeli-based Gilat Satellite Networks Ltd., which services satellite-based communications networks, said Monday its second-quarter profit fell on weak results from its Colombian operations.

The company earned $1.3 million, or 3 cents per share, compared with profit of $5.5 million, or 13 cents per share, during the same period a year prior. Revenue fell 7 percent to $65.6 million from $70.3 million.

"Our financial results were mainly affected by the Colombian operations," said Chief Executive and Chairman Amiram Levinberg, in a statement. "We are in advanced negotiations with the Colombian government and hope that an agreement can be reached by the end of the third quarter."

Meanwhile, the company said its $11.40 per share, or $475 million, sale to a group of private investors could fall apart. The group, which includes The Gores Group LLC, Mivtach Shamir Holdings Ltd., DGB Investments Inc. and companies affiliated with Roy Ben-Yami, Ami Lustig and Eytan Stibbesaid, have new requests and will not pay the previously agreed upon price.

Gilat rejected the proposed changes and said it already met the requirements of a previous "definitive agreement." It said the private investors have 72 hours to complete the acquisition or legal action could be taken. The deal includes a breakup free of $47.3 million, Gilat said.