Yuval Steinitz originally wanted to sell the shares without creating a controlling core in the bank.
Sources inform ''Globes'' that Minister of Finance Yuval Steinitz is reconsidering his position on how to sell the government's stake in Bank Leumi (TASE: LUMI). The Ministry of Finance is reconsidering his original position supporting a sale of the shares without creating a controlling core in the bank.
At the start of his term, Steinitz suggested to sell the government's holding in Bank Leumi without a controlling core in the bank, despite the official position of the Bank of Israel, which opposed such a move. In order to sell the government holding in Bank Leumi without a controlling core, it would be necessary to amend the so-called Marani law in the Banking Ordinance, which regulates the conduct of a bank without a controlling core.
"The finance minister is deliberating, but he is still determined to sell the state's holdings in both Bank Leumi and Israel Discount Bank (TASE: DSCT) by the end of 2010," said an aide. He added that Steinitz plans to submit an amendment to the Marani law at the start of the Knesset's summer session, and that he would work hard to get it passed.
Published by Globes [online], Israel business news - www.globes-online.com - on March 18, 2010
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