Competition for the acquisition of the controlling interest in Dexia Israel Bank is heating up. Israel Discount Bank (TASE: DSCT) subsidiary Mercantile Discount Bank (TASE: DSCT) has announced to the Tel Aviv Stock Exchange (TASE) its intention of bidding for the acquisition of a controlling interest in Dexia Israel, which provides credit to local authorities in Israel. Bank of Jerusalem (TASE: JBNK) has already announced its plan to merge Dexia Israel into Bank of Jerusalem.

"The board of directors at Discount Bank is considering the possibility of a merger between Dexia Israel and Mercantile Discount Bank and has authorized Discount Bank's management to contact you with a request for inclusion in any proceeding in this matter," Discount Bank CEO Lilach Asher-Topilsky wrote in a letter to Dexia Israel chairperson Levana Shifman. The letter continued, "We believe that the character of the Discount group's activity and its size and capabilities facilitate an optimal integration of Dexia Israel's unique activity with that of Discount Bank."

Dexia Israel became a bank with no controlling core several months ago after its former controlling shareholder, global Dexia Bank, sold its shares in Dexia Israel on the TASE. Jerusalem Bank has since proposed a merger and it now appears that Discount Bank is joining the race.

Published by Globes [online], Israel business news - www.globes-online.com - on July 9, 2018

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