With a trading suspension in participation units of Givot Olam Oil Exploration LP (TASE:GIVO.L) in its third day, and the partnership's report of a TASE threat to remove the units from indices in which they are a component, off-floor transactions point to a significant drop in value of the units.
According to Mea Net Ltd., a firm that provides off-trading floor transaction services, there are offers to buy Givot units at price ranging from NIS 0.04-0.06, which are 47-67% below the closing price last Thursday.
These are specific individual offers, and only to buy, so it difficult to say that they represent investors' views of the value of the participation units. This is especially true while Givot has not yet published its final engineering report.
It is not clear yet when Givot will publish the final engineering report, and it still needs a green light from the Israel Securities Authority, which has so far nullified two drafts of Givot's report on the matter.
Published by Globes [online], Israel business news - www.globes-online.com - on September 21, 2010
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