Sources inform ''Globes'' that Len Blavatnik expects to complete due diligence of Ma'ariv Holdings Ltd. (TASE: MARV), the publisher of Hebrew daily "Ma'ariv" within a week. He hired the Herzog, Fox & Neeman Law Office for this purpose, and it hired accounting firms for assistance.
Blavatnik reportedly wants to buy all Ma'ariv Holdings shares. However, the same sources say that Ma'ariv Holdings chairman and Ma'ariv publisher Ofer Nimrodi wants to hold onto a minority stake. Nimrodi was not available for comment by web-posting.
As "Globes" was the first to report, three weeks ago, Blavatnik and Nimrodi signed a 30-day no shop agreement, binding them to negotiate only with each other. They also agreed to confidentiality, which has minimized the disclosure notices on the status of the deal. The no shop agreement enables the parties to negotiate without fear of parallel negotiations that might affect the sale price.
Two acquisition options were proposed at the start of the Blavatnik-Nimrodi negotiations several months ago. The first calls for Blavatnik to acquire the 62% in Ma'ariv Holdings held by Israel Land Development Company (TASE: ILDC), controlled by Nimrodi. The second proposes that Blavatnik acquires only part of the stake. Israel Land stated in its notice to the TASE that the negotiations with Blavatnik were for its entire holding in Ma'ariv Holdings.
Published by Globes [online], Israel business news - www.globes-online.com - on August 24, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008