The fall in Bank Hapoalim's (TASE: POLI) share price yesterday may have disrupted plans by its controlling shareholder, Shari Arison, to sell a bloc of shares in the bank. Earlier this week, she announced her intention to sell a bloc of shares estimated at tens of millions of dollars.
Capital market sources say that Arison offered the shares to several financial institutions, but technical reasons delayed the distribution. Meanwhile, the market momentum changed direction, especially among bank shares, and Bank Hapoalim's share fell 2.8% yesterday.
The drop reportedly prompted Arison to withdraw, for now, the plan to distribute shares. The distribution will be made on the basis of Bank Hapoalim's current share price, so any daily change in price level affects the amount that Arison will get for the shares.
Arison Holdings Ltd. said in response, "Stuff and nonsense. There has been no attempt to distribute shares."
The Bank Hapoalim shares held by Arison-controlled Israel Salt Industries Ltd. (TASE:SALT) are defined as "free shares", which she can sell without permission from the Bank of Israel. This gives her flexibility in a decision to sell, and the ability to wait for the bank's share price to rise again.
Bank Hapoalim's share rose 0.4% today to NIS 16.27.
Published by Globes [online], Israel business news - www.globes-online.com - on January 13, 2010
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