Meitav Investment House Ltd. and Gaon Investment House Ltd. last night broke off the merger talks with Prisma Investment House Ltd. without the parties signing an agreement. They could not agree on each parties' share of the joint company. Gaon and Meitav are continuing their merger negotiations.
Sources believe that the reason for the break-up is the continuing shrinkage of Prisma's assets under management, which would reduce Prisma's share of the joint company.
The negotiations were led by Markstone Capital Partners Group LLC managing director Amir Kess for Prisma, which Markstone owns; Gaon Investment House chairman Shai Preminger; and Meitav chairman Zvi Stepak. Last week, Gaon and Meitav were taken by surprise by the departure of Prisma CEO Yuval Gavish, who was supposed to head the joint company.
On January 1, "Globes" first reported that Gaon and Meitav wanted Prisma to have a smaller share in the joint company because of the ongoing decline in Prisma's assets under management. Sources close to Markstone said at the time, "The deal will be made only if Prisma gets 40% of the shares."
The parties also disagreed over who would be the CEO of the joint company.
Markstone planned to set up a company that would consolidate assets of Prisma, Meitav Investment House, and Gaon Investment House, and which would have more than NIS 25 billion in assets under management.
Published by Globes [online], Israel business news - www.globes-online.com - on February 2, 2009
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