Reuven (Beny) Alagem’s resignation from the post of president and CEO of international computer company Packard Bell was like a cold shower for the shares of Israeli company Super Email at the end of the week. The company’s shares plunged 5.2% on Thursday, and continued sliding today.
The link between the two events is clear. The Alagem family controls Super Email. The company itself was floated on Wall Street as an industrial company dealing in enamel coatings for kitchen utensils, but in fact most of its high revenue and profits stems from its exclusive representation in Israel of Packard Bell, one of the world’s largest PC manufacturers, a concern with plants in the US, Europe, and the Far East.
Today, Super Email released a reassuring announcement to the TASE, according to which, "there is no link between Alagem’s resignation from Packard Bell and Super Email’s enterprises in Israel, and the ties between the two companies will continue unchanged." Super Email stressed that, according to the latest version, from July 1997, the distribution agreement with Packard Bell International is for ten years, and is automatically renewed every January 1. This is unless notice is given that the agreement is cancelled, in which case it continues in force for ten years from the notice date.
Packard Bell informed the US stock market at the end of last week that Beny Alagem would cease to serve as president of the company. Alagem explained that differences of opinion with the controlling shareholders in the computer giant, NEC and Groupe Bull, led him to leave the company he founded.
Published by Israel's Business Arena on July 5, 1998