"The Bank of Israel and State of Israel Holdings have decided to sell
60% of the shares of Mercantile Discount Bank, due to difficulties
liable to arise on the sale of all the bank's shares".
Superintendent of Banks Zeev Abeles says that the Bank of Israel
has not yet begun examining whether Bernard Shrier is eligible to
acquire control in Mercantile Discount Bank. He states that all
contacts with Shrier on this matter have been casual
conversations.
This emerges from a response affidavit filed with the Supreme Court
by the Governor of the Bank of Israel and the Superintendent of Banks,
in response to the petition of C.P. Holding and Shrier. Following the
petition, the Supreme Court issued an injunction against the authorities
requiring them to show reason why they should not examine whether the
two petitioners merit to be issued a permit for the acquisition of
control in Mercantile Discount Bank.
Abeles states that at the present stage, the program worked out
jointly with State of Israel Holdings envisages the sale of 60% of the
bank's shares, due to difficulties liable to arise from the sale of 100%
of the shares. According to him, the petitioner at this stage is at most
claiming legal rights for acquiring the shares; and this being so, it
would be out of place for the Bank of Israel to commence any procedures
whatsoever for issuing a control permit. Abeles says it is not clear
that the petitioner has any right whatsoever to means of control.