Suisse Group AG's (NYSE: CS; SWX: CSGN; XETRA: CSGZ) second quarter financials suggest that IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Koor Industries Ltd. (TASE:KOR) jumped on the Swiss bandwagon at the right time.
Credit Suisse beat analysts' forecasts with a net profit of $1.5 billion for the second quarter, which was less than the $1.7 billion net profit posted for the first quarter. The bank continued to improve its capital adequacy ratio to 15.5% for the second quarter from 14.1% for the preceding quarter - a high ratio by any measure.
Koor's share price rose 3% today to NIS 112.30.
In the past month, Koor boosted its stake in Credit Suisse to 1.73%.
In a separate development, yesterday Koor published an amendment to its shelf prospectus to allow it to issue bonds on whihch interest paid to the bondholders will be linked to the performance of Credit Suisse's shares. The amendment states that a one-time payment will be made that will include interest amounting to 10% of the rise in the value of Credit Suisse's shares at dates stated in the prospectus.
It seems that Koor intends to expand its investments by means of the bond issue. Koor raised NIS 1.6 billion in three rights issues over the past year.
Published by Globes [online], Israel business news - www.globes-online.com - on July 23, 2009
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