The workers committee at Elisra Group today offered to buy Israel Aerospace Industries Ltd.'s (IAI) (TASE: ARSP.B1) 30% stake in the company. The workers were responding to comments by IAI chairman Yair Shamir about his disappointment from IAI's Elisra holding and his wish to sell it. Elisra develops and manufactures electronic warfare systems for the IDF and other armed forces.
"Globes" reported that IAI is in talks to sell the Elisra stake to its partner in the company, Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT). Shamir has held several meeting with Elbit Systems president and CEO Joseph Ackerman and other executives on this matter.
> "Globes" also reported that IAI workers committee chairman Haim Katz visited the Elisra plant, which is interpreted as another sign of the negotiations.
The Elisra workers committee today asked Histadrut chairman Ofer Eini to expedite negotiations with Elbit Systems' management over their future. The employees fear that the disputes between IAI and Elbit Systems and the negotiations for the sale of IAI's stake will result in the two companies trying to reduce the value of Elisra and the price paid for it. The Histadrut already supports Elisra's workers in a prolonged labor dispute.
Elisra's employees allege that management wants to dismantle the company and transfer departments to Elbit Systems, thereby unilaterally changing the employees' contract terms by replacing the collecting agreement with personal contracts.
Published by Globes [online], Israel business news - www.globes-online.com - on March 6, 2008
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