Sources inform "Globes" that Yitzhak Manor's share of IDB will be no greater than 9.9%, if the negotiations between the Recanati family and the consortium headed by Nochi Dankner are successful.
The main reason for the restriction is that Manor, the son-in-law of the late David Lubinski is one of the controlling shareholders in Union Bank, with an 18.04% share.
If Manor held over 10% of IDB, IDB would have the status of an associated company in relation to Union Bank. This would prevent the bank from granting credit to IDB and its many subsidiaries and associated companies.
For the same reason, Dankner, the head of the group trying to acquire control of IDB, will have to sell his share in the Bank Hapoalim controlling interest. If Dankner remains a partner in the bank's controlling interest and holds more than 10% of IDB, IDB would have to repay a large part of its loans from Bank Hapoalim.
If the IDB-Dankner deal goes through, Nochi Dankner and his father Yitzhak Dankner, the controlling shareholder in Ganden, will therefore be forced to sell their Bank Hapoalim holdings. Yitzhak Dankner's family holds 1.96% of Bank Hapoalim through its 16.86% share of Israel Salt Industries, which has 11.63% of Bank Hapoalim. The holding is valued at $40 million.
The other partners in Israel Salt have first refusal rights to buy the controlling shares in the company.
As far as is known, negotiations between the controlling shareholders in Israel Salt for acquiring the Yitzhak Dankner group's share of the company have not yet begun. It is believed, however, that if the IDB-Dankner deal goes through, the Dankner family will exercise its first refusal rights to buy Nochi and Yitzhak Dankner's shares in Israel Salt and ensure that Israel Salt's share in Bank Hapoalim will not be affected.
Published by Globes [online] - www.globes.co.il - on April 22, 2002