The pension tender of Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) is drawing to a close. Market sources believe that Harel Insurance Investments Ltd. (TASE: HARL) and Menorah Mivtachim Holdings Ltd. (TASE: MORA) will win it. The winners will give Teva’s Israeli employees substantial discounts on management fees.
Menorah Mivtachim and Harel will apparently grant rebates amounting to 5% of the premium, out of the mandated maximum management fee of 6%, and up to 0.25-0.3% of the accumulated assets, out of the maximum management fee of 0.5%. These rebates will be paid to Teva employees over several years, beyond the three-year threshold that applies in many current tenders.
Menorah Mivtachim will reportedly provide pension insurance for most of Teva’s employees, while Harel will be the secondary insurer. Most of Teva’s employees in Israel are factory workers and who have pension funds.
Several months ago, Teva said that it would stipulate in the tender that Hilan Tech Ltd. (TASE: HLTC) would handle the pension financial transfers for the company’s employees.
Teva said, “Teva places great importance in creating a high-quality pension plan for its employees. Teva has not yet decided who will be the future provider of pension products for its employees.”
Published by Globes [online], Israel business news - www.globes.co.il - on April 19, 2007
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