Investec: John Gutfreund's decision to join Unterberg Towbin investment bank will expedite negotiations for the sale of a 50% share in the bank to Bank Hapoalim.
"The recruitment of John Gutfreund, 71, the 'King of Wall Street', to US investment bank Unteberg Towbin will expedite Bank Hapoalim's negotiations to acquire 50% of the US bank for $50 million." This was the assessment of Investec banking analyst Kobby Finkelstein.
Bank Hapoalim started its negotiations on buying 50% of the bank several weeks ago. Unterberg Towbin specializes in technology. "The Wall Street Journal" yesterday reported that the technology sector slump has severely affected the bank, which had to lay off 30% of its staff.
Gutfreund, former CEO of the Salomon Brothers investment company, was recruited to Unterberg Towbin to help expand its asset management department and recruit customers outside the high tech field. Gutfreund, known for his extensive connections in the US capital market, is linked to Bank Hapoalim through his many years of acquaintance with Lewis Ranieri, his deputy at Salomon Brothers, who heads Hyperion Venture Partners, together with Bank Hapoalim director Scott Shay. Hyperion is a partner in the Bank Hapoalim controlling interest.
Published by Israel's Business Arena on November 15, 2001