York Capital Management invests in NetManage

The managers of York Capital Management LLC have said repeatedly that they are looking for investments in Israel. After acquiring full ownership of local investment house Psagot Ofek Investment House Ltd., investing in Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT), and the unsuccessful attempt to acquire the state's holdings in Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ), the next move is just a matter of time. In the meantime, until that happens, York has picked up some shares of a company with an Israeli connection - NetManage Inc. (Nasdaq: NETM), managed by CEO and chairman Zvi Alon. The $2.7 million it paid for its shares is a mere pittance for York, which has $8 billion in assets under management.

At the beginning of last week, York notified the US Securities and Exchange Commission (SEC) that it had become a party-at-interest in NetManage, with a 5.1% stake. The document was filed on behalf of an investment company named JGD Management, after York founder and CEO James G. Dinan, and the purchases were also made through other entities related to the fund. York purchased 489,800 NetManage shares for a total of $2.7 million, a transaction which it financed from its own funds as well as those of customers whose accounts it manages on their behalf. The signatory on the document is York's chief investment officer, Daniel A. Schwartz.

NetManage markets software for integrating, web enabling, and accessing enterprise information systems. The company currently has a market cap of about $46 million. It ended the first quarter of 2007 with sales of $7.7 million and a loss of $3.6 million.

Published by Globes [online], Israel business news - www.globes.co.il - on June 17, 2007

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