"If Shari Arison capitulates to the demand of the Supervisor of Banks to oust Dan Dankner, she has effectively lost control of the bank," said a source close Bank Hapoalim (TASE: POLI; LSE:80OA) in response to the Bank of Israel's demand that Arison fire Bank Hapoalim chairman Dan Dankner.
The source added, "The struggle here isn't about Dan Dankner, but between the controlling shareholder and the Bank of Israel. It's unacceptable for the Bank of Israel to intervene in the day-to-day management of Bank Hapoalim. It may intervene in cases of unreasonable decision-making, but not in day-to-day management.
"The Bank of Israel called for shareholders to acquire control of the banks. The acquisition of control carries a price - you must bring all the money from home, you can't take loans to finance the acquisition of control of a bank. A controlling shareholder comes along, pays a lot of money, and is then told how to run the bank that he controls?
"Arison's partners sold their shares, and the Bank of Israel approved her purchase of their shares and the expansion of her control. She appointed the bank's chairman; why else does she have control? Why should she pay so much to acquire the controlling interest? Was there some kind of extraordinary event here? One might think that appointing Zion Keinan was the appointment of the last man. It should be remembered that this is the appointment of the deputy CEO. What's not right here?"
Published by Globes [online], Israel business news - www.globes-online.com - on April 26, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009