Tefahot Israel Mortgage Bank's (TASE:TFHT) management is considering closer marketing cooperation with its parent company, United Mizrahi Bank (TASE:MZRH). Sources inform “Globes” that a Bank Tefahot VP has instructed branch managers to send him details about available space in their branches, where Mizrahi Bank desks might be placed.
The measure is intended to tighten the two banks' cooperation in marketing. Bank Tefahot is Israel's largest mortgage bank and Mizrahi Bank is Israel's fourth-largest commercial bank. Until now, Mizrahi Bank has referred many customers to Bank Tefahot, but many of Bank Tefahot customers are customers of Mizrahi Bank's competitors. Consequently, there is considerable marketing for potential for Mizrahi Bank.
Mizrahi Bank desks at Bank Tefahot would enable Mizrahi Bank officers to market services to Bank Tefahot customers and recruit them. A Mizrahi Bank spokesman said in response that the banks were considering ways to tighten cooperation. No response was available from Bank Tefahot.
Meanwhile, Histadrut bank and insurance workers division secretary Tzion Shema has notified Tefahot Bank's management that a labor dispute has been declared at the bank. Shema demanded that a collective rights agreement be signed with the bank's 740 employees.
The Bank Tefahot workers committees asked the Histadrut to expedite its approval for the labor dispute, due to rumors and reports that incoming Mizrahi Bank CEO Eli Yones would seek to merge the two banks, a move that Bank Tefahot workers oppose.
Published by Globes [online] - www.globes.co.il - on June 2, 2004