JERUSALEM, Nov 17 (Reuters) - Bezeq Israel Telecom

said on Monday its mobile unit Pelephone signed a

preliminary deal to buy all of rival HOT Mobile for 2.1 billion

shekels ($652 million) in cash from Patrick Drahi's Altice

International.

Bezeq, Israel's largest telecoms group, said in a regulatory

filing to the Tel Aviv Stock Exchange that signing the

non-binding memorandum of understanding gives Pelephone 45 days

to conduct due diligence and work towards a purchase agreement.

Pelephone does not have exclusivity during the negotiating

period.

A final deal would require a host of approvals, including

from both companies' boards and Israel's Communications Ministry

and Competition Authority.

Pelephone in July had offered Altice up to 2 billion shekels

for HOT Mobile but it was not accepted. It raised the offer last

week.

Israeli media reported that two other parties were also

interested but their offers had so far been far lower than

Pelephone's.

($1 = 3.2220 shekels)

(Reporting by Steven Scheer; Editing by Emelia

Sithole-Matarise)