IAI wants to sell its stake because of Elisra's falling profits.
Sources inform ''Globes'' that Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) is in talks to buy out the stake of its partner in Elisra Group, Israel Aerospace Industries Ltd. (IAI). IAI chairman Yair Shamir has reportedly held several meetings with Elbit Systems' executives, including president and CEO Joseph Ackerman. Elbit Systems owns 70% of Elisra, and IAI owns 30% through Elta Systems Ltd.
Elisra has 1,200 employees. It manufactures electronic warfare and C4I (command, control, communications, computers, and intelligence) products for the IDF and other armed forces. Industry sources say that the company's profits have been in decline in recent years, which is why IAI has decided that the holding is no longer worthwhile.
Elbit Systems responded that as a public firm it would report any business deals through accepted channels.
IAI management declined to respond to the report.
Published by Globes [online], Israel business news - www.globes-online.com - on January 31, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008