In August, FIMI granted El Al a six-week extension to reach a collective agreement with its workers, but no deal has been struck.
First Israel Mezzanine Investors Fund (FIMI), run by CEO Ishai Davidi, has cancelled its planned $75 million investment in the airline, after its management failed to reach an collective labor contract with employees, which was a condition for the deal. El Al's share price fell 4.7% on the news.
FIMI announced its investment in El Al in January, and the parties signed a conditional agreement in April. The investment was to be made in stages, subject to El Al signing a collective labor contract with its employees. It didn’t. In August, FIMI granted El Al a six-week extension to reach an agreement with the workers, and when no deal was struck, it has now cancelled the investment.
Published by Globes [online], Israel business news - www.globes-online.com - on October 10, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013
Ron Steinblatt and Globes' correspondent