Goldman Sachs’s (NYSE: GS) deal with Prisma Capital Markets Ltd. (formerly Solomon Capital Markets) will go ahead, sources close to the deal believe. The companies signed an MOU several months ago.
Under the deal, Goldman Sachs will acquire 20-25% of Prisma from Markstone Capital Partners Group LLC for $90-100 million. Capital market sources said Prisma is a useful platform for Goldman Sachs to distribute its products in Israel.
The parties opened negotiations in March, but these were later suspended, and it seemed that Goldman Sachs had withdrawn from the deal. Although the negotiations have been stuck in recent weeks, sources close to the deal said that it would go ahead.
The sources said both parties had halted the negotiations and exchange of documents at this stage, and were reviewing their financial steps. The sources added that no progress was made in deals during the recent war. They said, however, that Goldman Sachs was taking a strategic and long-term perspective, and that when the situation clarifies, the parties would presumably resume negotiations, and that a deal was probable.
Capital markets said earlier that, for Markstone, a link-up with Goldman Sachs would create an opportunity to tailor products for the Israeli market, give Markstone access to international markets, and add value to the company.
Published by Globes [online], Israel business news - www.globes.co.il - on August 14, 2006
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