Shares in ITL Optronics Ltd. (TASE: ITL) soared 17.9% today on much higher than normal turnover of NIS 1.8 million.
The rise followed the company's announcement that Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) yesterday bought ITL shares worth NIS 1.5 million in an off-floor deal, at a price of about NIS 6.63 per share.
An Elbit Systems offer to purchase outstanding shares of ITL at a similar share price did not succeed.
The current deal hints at Elbit's intention not to give up on buying the remainder of ITL, and that sooner or later, whether through buying shares, another offer to purchase, or a merger, Elbit will take the company private.
Investors apparently believe that will be at a share price above the current one.
Published by Globes [online], Israel business news - www.globes-online.com - on August 19, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010