The "Miami Herald" reports that Venezuela President Hugo Chavez offered $100-150 million to acquire 20-30% in ImageSat International NV, which owns the Eros A and Eros B reconnaissance satellites. The paper cites documents in a civil complaint filed in the Federal Court for the Southern District of New York in July 2007. The paper claims that Israel launched the Eros B reportedly to spy on Iran's nuclear program. The complaint was filed by shareholders and the founders and investors of ImageSat.
ImageSat was founded in 2000 as a joint venture of IAI and a group of private investors. The company leases its high-resolution satellites for commercial use. IAI owns 42% of the company and Elbit Systems owns 12%.
According to the paper, Israeli owners effectively knocked off the deal in November 2006, "after a company director notified its representative in Venezuela, Stephen Wilson, to suspend all activities in the South American nation, according to the complaint filed by Wilson and others." Wilson is a founder and former president of ImageSat.
The "Miami Herald" says, "According to allegations in the court documents reviewed by "El Nuevo Herald", the decision to pull the plug on a deal with Venezuela was driven in part by the Israeli defense conglomerate, Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1), and in part by the military embargo ordered against Venezuela by the US State Department."
The paper quotes the report, ''Rather than the legitimate commercial interests of plaintiffs and similarly situated minority shareholders, defendants were motivated by the deteriorating international relationship between the US and Venezuela and Israel's desire to improve and maintain its historically good relations with the US."
The complaint alleges that ImageSat, despite its close ties to the Israeli government, was founded under an agreement that it would be managed independently and autonomously in order to provide satellite services to other governments "in assistance of their own national security agenda.''
The defendants have replied that the case should not have been accepted by the New York court because it is outside its jurisdiction. They also have denied the charges of fraudulent activity in detriment to sound business opportunities.
Published by Globes [online], Israel business news - www.globes-online.com - on April 21, 2008
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