Sources inform ''Globes'' that, earlier this week, a large number of Permira officers were in Israel for talks on Clal Insurance, and that IDB executives told Permira that it would have to greatly improve its previous offer for IDB chairman Nochi Dankner to agree to a sale.
Market sources believe that the presence of Permira Advisors LLC executives in Israel this week may signal that the sale of Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) by IDB Holding Corp. Ltd. (TASE:IDBH) is taking a great leap forward.
The sources added that there are other bidders for Clal Insurance, and that Dankner's aides and associates are divided about selling the company. A source close to the negotiations said, "Everything depends on the offer."
In late January, "Globes" reported that Dankner was on the verge of selling Clal Insurance to Permira at a value of $1.9 billion, and that Permira was about to begin due diligence of the company.
Clal Insurance's current market cap is $1.47 billion (NIS 5.39 billion), which means that the negotiations with Permira are being held at a 30% premium. Clal Insurance manages NIS 84 billion in pension funds, and has a 16% share of Israel's long-term savings market (life insurance, provident funds, and pension funds). Its annual premiums total NIS 10 billion.
Clal Insurance's share price rose 2.1% in morning trading to NIS 99.75
Published by Globes [online], Israel business news - www.globes-online.com - on February 16, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011