The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) CEO Eyal Lapidot is considering forming an investors group to acquire control of the company from Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG). Lapidot has been Phoenix CEO since 2009. The idea is reportedly at the very early stages, at best.
In response to a query by "Globes", Phoenix said, "Phoenix is a public company, and when there is something to report, it reports it. At this stage, the company has nothing binding requiring any report."
Delek Group declined to comment on the matter.
The idea of buying the controlling interest in Phoenix from Delek is in response to the debate about over-concentration in the economy and the cross-holdings between financial and non-financial companies. Delek owns 55% of Phoenix, which in turn controls Excellence Investments Ltd. (TASE: EXCE). Insurance market sources said that Delek would not object to a sale of Phoenix at the right price.
Any sale of Phoenix would be a big deal for the insurance regulator, which demands a clear controlling core in insurance companies and proof that the owners have the financial wherewithal and soundness.
Lapidot is a strong and successful CEO, who has improved Phoenix's business since he took over the company. He is considered an asset to the company, including for future shareholders. He has an option on 2.4% of the company and tens of millions of shekels earned as an executive at Delek Israel Fuel Corporation Ltd. (TASE: DLKIS) and Direct Insurance - Financial Investments Ltd. (TASE: DIFI).
There is a precedent at Delek Group to sell control of a subsidiary to a highly esteemed and well compensated executive: Delek Automotive Systems Ltd. (TASE: DLEA) CEO Gil Agmon, who had a minority stake in the company, acquired the controlling interest in it from Tshuva.
Published by Globes [online], Israel business news - www.globes-online.com - on December 8, 2011
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