Elbit Systems' Michael Federmann: The acquisition is one of the best investments the companies could have made.
"The acquisition of Elisra Electronic Systems by Tadiran Communications (TASE:TDCM), with Elbit Systems (Nasdaq:ESLT; TASE:ESLT) becoming the largest shareholder in Tadiran Communications, is one of the best investments the companies could have made," said Elbit Systems controlling shareholder Michael Federmann today. Federmann is likely to head the largest private sector defense company in Israel.
"The Elisra deal is right," said Tadiran Communications president and CEO Hezi Hermoni today. "The question is one of price, and an independent committee has been set up to examine the matter. We've had long experience with acquisitions, and we've learned that overseas acquisitions are problematic. Acquiring an Israeli company like Elisra is therefore necessary."
Hermoni will stay on as CEO of Tadiran Communications for the next three years. Elbit Systems president and CEO Joseph Ackerman will be appointed chairman of Tadiran Communications.
When asked about lay-offs in the merging companies, Ackerman replied that none were expected, just as Elbit Systems' merger with El-Op Electro-Optics Industries did not require any. "I'm optimistic," he said.
Published by Globes [online], Israel business news - www.globes.co.il - on December 28, 2004