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Cellcom IPO underwriters reject option to buy shares

 JERUSALEM (Reuters) - Underwriters involved in last month's initial public offering for Cellcom (NYSE:CEL - News) have opted not to exercise an option to buy additional shares in the company, Israel's largest mobile phone operator said on Thursday.

Goldman Sachs, the lead underwriter along with Citigroup and Deutsche Bank Securities, had an option to purchase up to 3 million more shares in Cellcom.

But Cellcom, which has more than 2.8 million subscribers and a 34 percent market share in Israel, said the option expired on Monday without being exercised.

A month ago, Cellcom raised $400 million in an IPO on the New York Stock Exchange. It sold 20 million shares at $20 each compared with a forecast of $16 to $18.

Since then, shares of Cellcom, which has a market value of close to $2 billion, have slipped to $18.17.