According to the new amendment in the Banking Law, Bank Hapoalim must
sell its holding in Bank Otzar Hachayal.
Bank Hapoalim refused to negotiate with Union Bank, the selling of
its holdings (51%) in Bank Otzar Hachayal (BOH). Union Bank is examining
the purchase of a small bank which will be integrated in the bank's
activity in an attempt to expand Union Bank's retail sector. The
intended purchase is part of Union Bank's expansion plan.
According to the new amendment in the Banking Law, Bank Hapoalim must
sell its holding in BOH. However, it seems that at this stage, the bank
is not interested in doing so. Attempts to issue BOH shares on the stock
market were not successful, and have been stopped for the time
being.