Eliahu refuses offers for Bank Leumi stake

Shlomo Eliahu was offered NIS 900 million for his 9.59% stake in the bank, a discount on the market price.

Shlomo Eliahu yesterday rejected several offers from capital market sources for his 9.59% stake in Bank Leumi (TASE: LUMI). The offers came in the wake of the recovery in financial stocks over past few weeks. He is continuing his efforts to finance the acquisition of Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) from Assicurazioni Generali SpA's (BIT: GASI).

Brokers reportedly approached Israeli and foreign investment institutions and investors. Eliahu, is asking NIS 900 million for the Bank Leumi shares, but the offers he received were several percent below the bank's market price, and he rejected the offers.

Shlomo Eliahu Holdings Ltd., through which Shlomo Eliahu owns his stakes in Bank Leumi and Migdal, said in response, "The company weighed the offer in order to facilitate the procedures related to the acquisition of the controlling core in Migdal. After reviewing the offers received, it was decided at this stage to reject them on the assessment that the shares are worth more."

In early September, Eliahu signed a new structure for the acquisition of Generali's 69.1% stake in Migdal. The deal is for NIS 3.55 billion for the stake, giving a company value of NIS 5.1 billion, compared with a value of NIS 6.05 billion in the original deal reached in March. Eliahu must sell his Bank Leumi stake as a condition for acquiring Migdal.

Published by Globes [online], Israel business news - www.globes-online.com - on October 17, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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