”Globes” has learned that Yaacov Gadish, arbitrator of the Buy and Bonus price club dispute, today notified the heads of Bank Leumi and Discount Bank that the damage caused by the affair to Visa-ICC amounted to NIS 3.1 million.
Gadish was given the job of determining whether Visa-ICC suffered damage due to the Buy and Bonus price club, and if so, how much. Gadish estimated the damage at NIS 3.1 million, of which Bank Leumi is to pay Discount Bank 35%, Bank Leumi’s share in the company at the time of the affair.
”Globes” has learned that Bank Discount demanded NIS 50 million at the beginning of the arbitration for damages claimed to the credit card company, due to the behavior of Bank Leumi, but the sum determined by the arbitrator was much less.
The ruling brings to an end a long, complex dispute, which began over a year ago, before the dissolving of the partnership of many years’ standing between Bank Leumi (65%) and Discount Bank (35%) in the profitable credit card company Visa-ICC. The Anti-Trust Authority director-general ordered the banks to dissolve their partnership, which apparently affected the healthy longstanding relationship between the partners.
Published by Israel's Business Arena on October 22, 2000