Each bank will name a price, which can be modified in light of the other bid. The proposal for implementing a BMBY (buy me buy you) procedure was rejected.
"Globes" learns that the heads of Bank Leumi and Discount Bank have reached agreement on the method by which their partnership in Visa ICC is to be dissolved. Holdings in the company are to be sold through open price competition, in which either bank names a price and can improve its offer in light of the other bid.
The two banks reached agreement in the first meeting between their representatives this week, in anticipation of the launch of negotiations for the dissolution of the partnership between them in the credit cards company. The meeting rejected the proposal for holding to be sold by the BMBY (buy you buy me) method, in which one bank offers to buy out the other at a certain price, and if the other bank refuses, it must buy the share of the offering bank at the offered price.
As directed by Anti-Trust Authority director-general Dr. David Tadmor, the two banks must conclude the deal by the end of the year. Bank Leumi holds 65% of the shares of Visa ICC, and Discount Bank holds 35%.
Published by Israel's Business Arena December 8, 1999