“Globes” has learned that Oudi Recanati, has offered to sell his stake in Israel’s largest holding company, IDB Holdings, to his cousin, Leon Recanati. Oudi Recanati serves as the concern’s co-chairman and co-CEO, together with Leon Recanati. Both men are partners in the same companies. Leon Recanati has not yet stated his position about acquiring the shares, and Oudi has opened preliminary contacts with outside groups in an attempt to sell his indirect stake in IDB.
IDB Holdings is traded at a company value of $900 million, after having lost almost half its value in the past year. 52% of the concern is owned by private companies under the control of the Recanati and Carasso families. The Recanatis’ stake in the companies is divided between Oudi and Leon Recanati (40% each) and another cousin, Lenny Recanati (20%). Another party at interest in IDB Holdings is US investment bank Goldman Sachs, which directly owns 9.5% of equity.
One of the reasons for Oudi Recanati’s decision is his desire to move his business operations to Geneva, where he dominates a private bank named IDB Bank. The bank is considered small by European standards, but mid-sized for Israel.
Another reason for Oudi Recanati’s action are the sluggish proceedings and difficulties raised by the bureaucrats and regulators of Israel’s communications market, in which the concern is involved through its subsidiary Discount Investments. Discount Investments has holdings in cable company Tevel and cellular operator Cellcom.
Rumors among the top economic echelon claim an additional motive for the cousins’ divestment of their joint stake in the concern is a personal dispute that arose following the death of Oudi’s father, Rafael Recanati, two years ago. The dispute intensified with the deterioration in the concern’s financial results over the past year. These reports are unconfirmed.
IDB Holdings controls subsidiary IDB Development, and has a 13% stake in Discount Bank, once controlled by the Recanati family. IDB Development is traded at a company value of $1.4 billion, and has a controlling interest in Clal Industries, Discount Investments, Clal Insurance and the Azorim real estate company.
The IDB Holdings spokesman responded to a request for comment by saying that the company does not respond to rumors.
Published by Israel's Business Arena on 27 March 2001