Elbit Systems raises stake in Tadiran Communications

The company bought 535,000 Tadiran Communications shares for NIS 83 million.

Tadiran Communications Ltd. (TASE: TDCM) announced today that Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) signed an agreement yesterday with a third party to buy 535,000 ordinary shares in the company at NIS 155.04 per share - a total of nearly NIS 83 million.

When the sale is closed, Elbit Systems will own 5,342,578 Tadiran Communications shares, amounting to 41.8% of its share capital and 43.23% of its voting rights. The sale is due to be closed on June 5.

Elbit Systems reported good results for the first quarter, which for the first time included the financial results of Elisra Group. Elbit Systems acquired 70% of Elisra in December 2005.

Elbit Systems’ consolidated revenue rose 45% to $334.4 million for the first quarter. The company posted a net profit of $14.5 million (4.3% of revenue), compared with $12.7 million (5.5% of revenue) for the corresponding quarter of 2005. The company posted earnings per share of $0.35 (fully diluted) for the first quarter, compared with $0.30 for the corresponding quarter of last year.

Published by Globes [online], Israel business news - www.globes.co.il - on May 25, 2006

© Copyright of Globes Publisher Itonut (1983) Ltd. 2006

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