Trading in shares of Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH) and its subsidiary Clal Industries and Investments Ltd. (TASE: CII) were suspended by the TASE until 10:30 am after the companies announced that negotiations for the sale of the controlling interest in Clal Industries to Viola Private Equity) have been called off due to a dispute over the terms of the deal.
Viola also suspended its talks with Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) to participate in its acquisition of Clal Industries.
At the same time, IDB and Clal Industries announced talks to sell Clal Industries' subsidiary Mashav Initiatives and Development Ltd., which owns 75% of Nesher Israel Cement Enterprises Ltd., to Dankner's partner in IDB, the Livnat family. Before the talks with Viola, Dankner sought to sell the Clal Industries stake to the Livnat family.
IDB and Viola suspended negotiations for the acquisition of 40% of Clal Industries for NIS 1.52 billion, because they could not agree on a defense mechanism in the event of a fall in the latter's value in the future. Viola also sought a 10% discount on Dankner's asking price, and a NIS 700 seller's loan to Viola.
Published by Globes [online], Israel business news - www.globes-online.com - on February 5, 2012
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