Aeronautics and Shikun u'Binui in major Azeri deals

Both companies are in the delegation with President Peres on his visit to Azerbaijan.

Two of the Israeli companies participating in President Peres' delegation to Azerbaijan are very close to signing major contracts there.

Aeronautics Defense Systems Ltd. is expected to set up a factory in the former Soviet republic, while Arison unit Shikun u'Binui Holdings Ltd. (Housing and Construction) (TASE: HUCN) is expected to build highways there.

On his arrival at the airport in Azerbaijan President Peres told his hosts, "We can show you technological capability and you can bring us oil."

Among the notable Israeli companies already operating in Azerbaijan are Ness Technologies Inc. (Nasdaq:NSTC), which has established a local subsidiary, and Motorola Israel Ltd., which has a stake in the local cellular operators.

Elbit Systems Ltd. (Nasdaq: ESLT; TASE:ESLT) is also very active in Azerbaijan.

President Peres said, "I spoke with the businesspeople in the delegation. I had no idea that our two countries had relations on sensitive security topics."

Shikun u'Binui Holdings is expected to build major highways from the capital Baku worth $300-350 million. The project, which has not been finalized, is expected to be financed by Bank Hapoalim (LSE: 80OA; TASE: POLI) and Bank Leumi (TASE:LUMI).

Published by Globes [online], Israel business news - www.globes-online.com - on June 28, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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