The Michael Federmann family, which holds a controlling interest in El Op, received $50 management fees from the company during 1996-1999. The disclosure resulted from details of the merger between El Op and Elbit Systems.
The family will receive 32.2% of the shares of Elbit Systems as part of the merger. The current market value of the shares is $195 million. The merger is expected to take effect by the end of May.
Following the merger, the Federmann family will become the largest shareholder in Elbit Systems, which will encompass a quarter of Israeli defense industry activity. Elron, the current holders of the controlling interest in Elbit Systems, will hold 22.8% of the company after the merger is completed.
Joseph Ackerman will continue as Elbit president after the merger. El Op general manager Jacob Toren will serve as Chairman of the Merger Committee for six months. Each of the two will receive $24,000 per month, a grant of $250,000 for completing the merger, and an additional grant of $240,000 between the date of the merger and the end of 2000.
Published by Israel's Business Arena on January 11, 2000