Sources inform "Globes" that Avraham Roemi, a former controlling shareholder in Bank Otzar Hashilton Hamekomi, plans to bid for the controlling interest in Union Bank of Israel (TASE: UNON).
Roemi wants to buy Shlomo Eliahu’s shares in Union Bank, and is also interested in buying shares from other Union Bank shareholders. As reported this week in "Globes", Shlomo Eliahu is preparing to sell his controlling interest in Union Bank, before bidding to acquire control of Bank Leumi (TASE: LUMI).
Roemi notified Eliahu today that he wanted to explore a possible acquisition of Eliahu’s shares in Union Bank, subject to Roemi’s becoming part of the bank’s controlling interest. He is also willing to explore the purchase of additional shares from Eliahu’s partners as part of the deal.
Roemi says that he had formerly been a partner in the controlling interest in Bank Otzar Hashilton Hamekomi, together with Dexia Bank (Brussels, Paris: DEXI), after the Bank of Israel approved him as a controlling shareholder. He therefore expects no problems obtaining approval for the current deal. Roemi wants to meet with Eliahu to move the deal forward.
Eliahu last month conducted negotiations to sell his one-third stake in Union Bank's controlling share with Direct Insurance - Financial Investments and IDI Israel Direct Insurance chairman Moshe (Muki) Schneidman. According to an agreement between the two sides, Schneidman was to have notified Eliahu of his position on the matter 10 days ago. Eliahu said that Schneidman had not yet given any notice, and that those negotiations were therefore at a standstill.
In addition, Eliahu is negotiating the sale with several other institutions and business-persons, but would not disclose their identities. "Globes" has learned that after Eliahu's intention to sell was reported in the media, the Israel Securities Authority contacted Union Bank and requested an announcement be made to the Tel Aviv Stock Exchange. The bank replied that it had not received any word from its controlling shareholders about any ongoing negotiations.
Eliahu told "Globes" that when initial negotiations ripened into official ones, he would notify Union Bank who would, in turn, would notify the stock exchange.
Eliahu owns 32.3% of Union Bank, of which 5% are owned by the Eliahu Insurance Co. The current value of the shares is NIS 250 million.
Published by Globes [online] - www.globes.co.il - on April 21, 2005