Harel Insurance, which owns the other 65% of Dikla, has been negotiating with Clalit to buy the balance of the shares.
Supervisor of Capital Markets, Insurance and Savings Yadin Antebi has given Clalit Health Services an extra week to complete the sale of its 35% holding in Dikla Insurance Co. Ltd. If the sale is not completed in time then Antebi has ruled that the holding must be transferred to a trustee. From the moment of the transfer Clalit will be unable to receive dividends and its representatives will be barred from sitting on Dikla's board.
Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), which owns the other 65% of Dikla, has been negotiating with Clalit to buy the balance of the shares. The negotiations were expected to be completed by the end of July and as Harel as the right to veto the sale of Clalit's shares in Dikla, it is highly unlikely that the health fund will sell its holding to another body.
The plan is for an exchange of shares with Clalit receiving Harel shares for its holding in Dikla.
Published by Globes [online], Israel business news - www.globes-online.com - on August 2, 2009
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