Sources inform ''Globes'' that Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) has dropped its planned acquisition of IBI Investment House Ltd. (TASE:IBI). Capital market sources have confirmed the report.
The take-over collapsed over the issue of the sale of Kobi Alexander's 17.5% stake in IBI. Four months ago, Africa-Israel, controlled by Lev Leviev, announced that it was negotiating to acquire the investment house from its founders and controlling shareholders, Zvi Lubetzky, Emanuel Kook and David Weisberg. The parties reached agreement on the main issues, but apparently could not agree on Alexander's stake in IBI.
Africa-Israel wanted to buy Alexander's stake, but neither Africa-Israel nor IBI wanted to be the party that transferred the proceeds of such a deal to Alexander. They feared that the US authorities would consider the payment as abetting a federal fugitive
IBI Investment House was founded in 1971, and currently manages NIS 11 billion in assets. It has a market cap of NIS 660 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 29, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007