Last week's unanimous decision by the Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) board to remove Nir Gilad from his post as CEO of the company this week, and to begin the process of removing him as chairman of Migdal Insurance Insurance Co., the group's main subsidiary, has been suspended because of the threats from Capital Markets, Insurance and Savings Authority director Moshe Bareket.
The Migdal board apparently made clear to Bareket that it would act in accordance with his instructions. For his part, Bareket declared that he was not prepared to see Gilad ousted from Migdal before the end of 2020, and that any move in this respect must be coordinated with him. The assessment on the market is that this is not the end of the story.
The board's decision ignited a fierce confrontation between Bareket and the controlling shareholder of the group and chairman of Migdal Insurance and Financial Holdings Shlomo Eliahu.
It seems that there will have to be a decision at Migdal: either Eliahu will depart, or Gilad will eventually be ousted, even if it is another few months, or both will move aside. A senior source at Migdal said that meanwhile it was business as usual at the company, with the current uproar not affecting day-to-day activity, and Migdal's share price has even been rising, if by less than other stocks in the sector.
Published by Globes, Israel business news - en.globes.co.il - on April 27, 2020
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