Mellanox Technologies Ltd. (Nasdaq:MLNX) reported yesterday that it is buying EZchip Semiconductor Ltd. (Nasdaq: EZCH; TASE:EZCH) for $811 million. Following the announcement Mellanox's share price fell 5% to $37.79, giving the Israeli Infiniband developer a market cap of $1.75 billion. However, EZchip's share price rose 14.4% to $25.16, giving a market cap of $757 million, still short of the price Mellanox is being for its neighbor in Yokneam, near Haifa.
The website Stocker.co.il checked out what the acquisition meant for Israel's institutional investors. It found that Israeli institutional investors lost NIS 18 million on their NIS 360 million holdings in Mellanox but earned NIS 56 million on their NIS 391 million holdings in EZchip.
Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) was the biggest winner on the deal, profiting NIS 9.4 million from its holdings in EZchip, while losing NIS 6.7 million on its holdings in Mellanox.
Similarly Menorah Mivtachim Holdings Ltd. (TASE: MORA) earned NIS 5.6 million from its holdings in EZchip but lost NIS 700,000 on its Mellanox shares.
On the other hand, Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) found itself out of pocket - losing NIS 3.8 million on Mellanox and gaining only NIS 1.1 million on EZchip.
Published by Globes [online], Israel business news - www.globes-online.com - on October 1, 2015
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