Restraint of Trade Commissioner David Tadmor rejected the application of Paz and Dor Energy for a deal in which Dor would be acquired by Paz. The companies asked Tadmor for a preliminary opinion, before embarking on negotiations. In his decision, Tadmor told the companies that due to Paz’s size, the purchase of Dor would result in an imbalance between market forces. The Restraint of Trade Commission would accordingly not approve such a deal.
As reported by "Globes", the Dankner group seeks to sell Dor Energy. It has reportedly contacted various groups in this matter. Sources close to the Delek group, controlled by Yitzhak Tshuva, report that negotiations recently took place between Delek and Dor, regarding the integration of the business of the two groups, making them into a single company that would operate under Delek’s name. The deal would result in the formation of the biggest fuel company in Israel.
The sources said that the deal would take the form of a share swap, such that Dor, which is the smaller company, would actually become a minority shareholder in Delek. The market value of Dor Energy, which is listed on the Tel Aviv Stock Exchange and the London stock exchange, is $48 million. The market value of Delek, which is listed on TASE, is $260 million. Based on that market value, it is reasonable to assume, the sources say, that Dor Energy will not receive more than 20% of Delek.
The Dankner group denies that negotiations are in progress with Delek. It also denied last week’s report whereby Dor Energy is up for sale.
Published by Israel's Business Arena February 16, 1999