Lieberman Group representative in Israel and Paz chairman Zadik Bino is examining the possibility of joining one of the consortia competing for control of Discount Bank, "Globes" learned today.
Bino might join the Jeff Keil group, which plans to compete for the bank’s purchase. Kiel’s lawyer Joshua Rosenzweig has been close to Bino and Lieberman, ever since he represented them during the purchase of Paz. It was recently reported that Bino is interested in selling his holdings in Paz. Bino also holds 20% of Kesher Barel, 17% of Reshet and Paz’s real estate company, Trade Development.
It was further learned that the Steinmetz family is also interested in forming a consortium to bid for the acquisition of the bank. Danny Steinmetz, who is currently overseas, was not available for comment. The Steinmatz family owns Ampal and is considered one of the veteran families in the diamond sector.
Estimates say that the Phoenix group, whose intention was to compete together with Discount Bank employees for control of the bank, is considering not competing at this stage. This is against the backdrop of the decision by the Supervisor of Banks not to permit the employees to join a Consortium which will purchase the bank, and taking into account the complexity of the transaction, which necessitates steep shareholders’ equity financing.
On the other hand, the Hayston brothers, Union Bank and Investec continue their efforts to form a Consortium to compete for the bank. As part of these efforts, British businessman Bernard Schreier received offers from two Consortiums in formation, to join them. Schreier plans to compete with the Hayston brothers for the purchase of control of the Mercantile Discount bank, after settling the legal dispute between the bank’s management and himself. However, if he participates in a Consortium acquiring the Discount bank, and under the assumption that the tender will necessitate separating Discount Bank from Mercantile Discount Bank, he is expected to prefer keeping his holdings in Discount Bank.
Published by Israel's Business Arena July 15, 1998