Such cancellation could result from an action brought by Bernard
Schrier, who claims 50% of the bank's shares. A compromise solution is
being sought.
The treasury may back-track on its intention of inviting bids for
the purchase of the Mercantile Discount Bank. It was reported to Globes
that the plan for selling the bank by means of an invitation to tender
was filed with the treasury as early as the end of October 1995, after
being approved by Discount Bank and the State of Israel Holdings
Company. But an action brought by businessman Bernard Schrier, claiming
50% of the bank's shares, has delayed approval of the plan and the
matter has been referred to legal counsel.
The treasury assesses that Schrier's lawsuit will result in a
material delay in the sale, since Discount Bank will be unable to
conclude an agreement for the sale of the bank until it is settled.
It is reported that contacts have accordingly commenced between
Schrier and all parties concerned, including the management of Discount
Bank and the treasury, in an attempt to reach a compromise enabling him
to acquire the shares. If this happens, then 50% of the bank's shares
will be sold to Schrier, and the proposed request for bids will be
cancelled. However, since both the Bank of Israel and the treasury had
called for the sale of all Discount's holdings in the bank,
preparations are expected to commence for a plan to sell off the balance
of the holdings