Ituran buys control of ERM for $2.8m

Ituran competitor Pointer Telelocation Systems is worried that the acquisition could harm it.

Ituran Location and Control Ltd. (Nasdaq:ITRN); TASE:ITRN) acquired 51% of ERM Electronic Systems Ltd. for $2.8 million. Sources inform ''Globes'' that that Ituran competitor Pointer Telocation Systems Ltd. (Nasdaq:PNTR) (formerly Nexus), a customer of ERM, is concerned that the acquisition could adversely affect the company.

Pointer is mainly concerned because some of its developments and production pass through ERM, exposing Pointer to the risk of leaks of technology to Ituran. Pointer declined to comment on the report.

Ituran said it had no intention of harming Pointer. Ituran explicitly said that the contract stipulated that ERM would continue working with its existing customers. Therefore, there will be no change in ERM’s collaboration with Pointer.

Published by Globes [online], Israel business news - www.globes.co.il - on September 17, 2006

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

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