The sale of Psagot Investment House Ltd., owned by York Capital Management, to Apax Partners is entering the final lap with the deadline for closing the deal of Tuesday September 28.
York Capital Management representative in Israel Jeremy Blank is prepared to compromise and lower Psagot's price, and the main dispute now is the question of indemnity.
However, Blank is not ready to extend the negotiations beyond the deadline even by one day, even at the expense of the deal being cancelled.
Apax, headed by chairwoman Zehavit Cohen, is demanding through its lawyers Ehud Sol and Ilanit Landesman-Yogev of Herzog Fox Neeman that York make a full commitment for indemnity in the case that a fine is imposed on Psagot after the investigation against it is completed, whether as part of a plea bargain or court ruling. Apax is also demanding that York has exposed it to court legal costs, and any damages caused to Psagot including the assets management license of an investment house.
There are persistent rumors that York's stubborn stand stems from the fact that another body, probably a foreign investment fund, is interested in purchasing Psagot. After September 28, if the deal does not go through, then York will be entitled to conduct negotiations with other companies. It also could be that the rumors are simply designed to put Apax under pressure.
Published by Globes, Israel business news - www.globes-online.com - on September 19, 2010
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