With less than 48 hours until the September 28 deadline for the sale of Psagot Investment House Ltd., owned by York Capital Management, to Apax Partners both sides to the deal are trading insults. Market sources are finding it difficult to fathom if this reflects brinkmanship to improve the deal or genuine problems.
York Capital Management representative in Israel Jeremy Blank insists he is not prepared to extend the deadline by one day even at the expense of the deal's cancellation.
A source close to York Management Capital said, "We've already given an extension and it is unclear why there is a delay. Zehavit (Cohen) is dragging her feet. Perhaps she is scared and doesn't want to do the deal and is looking for a way of getting out of it. All the licenses have been issued, what else needs to happen?"
There are stubborn rumors that York Capital Management has another buyer lined up.
Sources close to Apax Partners said in response, "There is no pressure being placed on us. The only commitment that Zehavit has is to Apax's investors. Why should we acquire an investment house that is about to receive a criminal indictment? We have alternatives that are just as good."
Published by Globes, Israel business news - www.globes-online.com - on September 26, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010