Permira Advisors LLC, which is negotiating with IDB Holding Corp. Ltd. (TASE:IDBH) for the acquisition of Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), is examining the possibility of appointing Izzy Cohen as CEO after the acquisition. Cohen is currently CEO of Africa-Israel Investments Ltd. (TASE:AFIL), controlled by chairman Lev Leviev. Cohen is one of Israel's top insurance executives, having served as CEO of Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) for ten years.
A well-informed source said, "Permira is readying a team. They want to come to the Ministry of Finance (at the regulatory approval stage) with an experienced Israeli CEO, in order to ameliorate concerns."
Clal Insurance CEO Shay Talmon, a former executive at Bank Hapoalim (TASE: POLI) and accountant general at the Ministry of Finance, has been in the post for three years. He is considered a candidate for a top post at a big bank: either Bank Leumi (TASE: LUMI) when CEO Galia Maor retires, or if necessary, at Bank Hapoalim. Sources believe that this is one reason why Permira is looking for alternatives to Talmon, if and when the acquisition of Clal Insurance is closed.
A Permira spokesman in Israel said in response, "No comment".
A spokesman for Izzy Cohen said in response, "An offer to serve as CEO of Clal Insurance is very flattering, but he knows nothing about it. In any case, he is completely occupied at this time with the fascinating challenge of managing Africa-Israel, and building the value of its assets in Israel and around the world."
A month ago, Cohen received a NIS 6.5 million bonus from Africa-Israel.
The negotiations between Permira and IDB, first disclosed by "Globes", are now in high gear. After the disclosure, IDB said it "is in contact with Permira with regard to a possible sale of Clal Insurance."
In addition to Clal Insurance, Permira is also interested in acquiring control of drip irrigation systems manufacturer Netafim Ltd.
Clal Insurance's share price fell 4.4% today to NIS 91.63, giving a market cap of NIS 5.3 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on February 24, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011