Gazit-Globe (TASE:GLOB), controlled by Chaim Katzman, has launched a scathing attack on the management of geothermal power company Ormat Industries Ltd. (TASE:ORMT). The attack comes three weeks before Ormat's annual general shareholders meeting on July 21.

An especially aggressive statement issued by Gazit-Globe, which holds 15% of Ormat's shares said, "Gazit-Globe is concerned about the management of Ormat in recent years …… and which has placed the company in a position that is not brilliant (an understatement) and a share price which has reacted accordingly."

Gazit-Globe goes on to attack Ormat's board of directors and claims that they have failed on substantive matters. The statement said, "While the sector in which the company operates continues to attract attention, and other companies have accomplished impressive achievements, the company's share price fell 13% in the past year alone and 35% over the past two years."

Gazit-Globe demands "soul-searching activities at the company," and wants to appoint a director with proven experience in complex financial management and managing a multinational company. Katzman would like to appoint Yuval Yanai, a former VP CFO at Koor Industries Ltd. (TASE:KOR).

This is a continuation of the control struggle between Katzman and Ormat CEO Yehudit Bronicki and chairman Yehuda Bronicki, who own 35% of the company through Bronicki Investments Ltd.

Clal Investments director of research department Yuval Ben Zeev described the latest statement by Gazit-Globe as the opening shot in a power struggle between Gazit-Globe and the Bronickis.

Gazit-Globe vice chairman Dori Segal insisted that there is no power struggle for Ormat and that the geothermal company is seen as a strategic investment.

Ormat's share price fell 0.3% this morning on the TASE to NIS 28.80.

Published by Globes [online], Israel business news - www.globes-online.com - on July 1, 2010

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