Sources inform ''Globes'' that France's La Compagnie Financiere Edmond de Rothschild (LCF Rothschild) is in considering acquiring 30-40% of infrastructures company Veolia Environment Israel Ltd. in cash. A few months ago, LCF Rothschild hired Cuckierman & Co. Investment House Ltd. to conduct due diligence on Veolia Israel and its business.
Veolia Israel, run by general manager Arnon Fishbain, has been operating in Israel for 16 years. It is a subsidiary of France's Veolia Environnement SA (NYSE: VE; Euronext: VIE) which operates in 105 countries and posted €36.2 billion revenue in 2008. It and its subsidiaries have 336,000 employees.
Veolia Environment Israel operates through four divisions: Veolia Environmental Services; Veolia Transport Israel Ltd.; Veolia Water, which owns half of the Ashkelon desalination plant; and Dalkia Energy and Services Ltd., which owns 20% of private power producer Ofer Power Stations Ltd. (OPC). Veolia Israel's annual revenue is estimated at $350 million and has 1,600 employees and subcontractors.
Veolia Israel is bidding in several tenders, including Haifa's Metronit cable car and the Ashelim thermosolar power station. The company also wants to become a partner in municipal water companies.
Several months ago, Veolia Transport decided to sell its 5% stake and operating contract for Jerusalem's light rail franchisee CityPass to Dan Public Transport Co. Ltd.. Media reports claim that one reason for the sale was lobbying by pro-Palestinian groups on Veolia Environnement.
Published by Globes [online], Israel business news - www.globes-online.com - on January 4, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010