Elsztain wants NIS 800m injection to save IDB

Argentinean billionaire businessman Eduardo Elsztain has called on his partner Moti Ben-Moshe to urgently inject NIS 800 million into IDB Development Corporation Ltd. (TASE:IDBD) in a step that could indicate the beginning of the end of their partnership. After many meetings in which the two partners have struggled to find a joint solution for the financially troubled company, Elsztain's urgent proposal to the company's board is valid until Thursday.

Elsztain believes that the only way that the company can meet its commitments is by raising a major amount of capital through a rights issue. Yesterday he even sent his Israeli representative Saul Lapidus and financial consultancy company Giza Singer Even CEO Yariv Philosoph to present his plan to the two external board members Giora Inbar and Henry Ben-Shimol and independent director Meir Shani, who together comprise IDB Development's auditing committee.

These three directors can tip the scales between Elsztain and Ben-Moshe.

Published by Globes [online], Israel business news - www.globes-online.com - on December 30, 2014

Elsztain wants NIS 800m injection to save IDB

Eduardo Elsztain's demand could mean the beginning of the end of his partnership with Moti Ben-Moshe.