Bank Leumi is pessimistic about IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner. In its weekly review, the bank responds to the possibility that the company might attach a going concern warning to its financial report for the second quarter of 2012.
"In view of the high yields at which IDB's bonds are traded, and the weakness sweeping its various businesses, it seems that the company lacks the means to recycle debts," Bank Leumi writes, adding, "Therefore, IDB and its subsidiaries are likely to continue selling non-financial holdings."
Bank Leumi is also pessimistic about Scailex Corporation (TASE: SCIX; Pink Sheets:SCIXF), controlled by Ilan Ben-Dov. Bank Leumi responded to the announcement by Hutchison Whampoa Ltd. (HKSE: 0013) that it is cancelling its acquisition of the controlling interest in Scailex, which controls mobile carrier Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) for $125 million, Partner's financial results for the second quarter, and the incorrect presentation made to Hutchison when the deal was signed. "As things appear at present, Scailex's bondholders, led by the financial institutions, will demand control of Partner," says the bank. "Nonetheless, it cannot be ruled out that the negotiations are not yet over, and Hutchison may try to acquire control of the company by other and cheaper means."
Bank Leumi concludes, "In all of the scenarios, the future of Scailex, and of its parent company, Suny Electronics Ltd. (TASE: SUNY), do not look good, and they face a particularly challenging period."
Published by Globes [online], Israel business news - www.globes-online.com - on August 26, 2012
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