Gaydamak wanted a $10-15 million price reduction, but Trebitsch refused.
Arcadi Gaydamak's acquisition of retail food chain Tiv Tam has fallen through, sources inform "Globes". The parties to the deal encountered disputes over the amount of the deal, as Gaydamak demanded a reduction of $10-15 million in the price.
Tiv Taam CEO Yaakov (Kobi) Trebitsch, who holds 36.8% of the chain's shares, opposed the reduction and had refused to discuss the matter at all, while Enter Holdings Ltd. (TASE:ENHD) chairman Amit Berger, who holds 38% of the chain, was undecided.
Under the original terms of the agreement, Gaydamak would have had to pay Trebitsch and Berger $20 million for reneging on the deal. However, according to a notice filed on Monday with the Tel Aviv Stock Exchange, an agreement has been reached through which Gaydamak will pay NIS 30 million for a stake of approximately 10% of Enter Holdings, the parent company of Tiv Taam. Of that sum, $2 million will be considered as a penalty paid by Gaydamak.
Published by Globes [online], Israel business news - www.globes.co.il - on June 18, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007