Sources inform ''Globes'' that the negotiations for the sale of bookseller Steimatzky Group to Arledan Investments Ltd. the owner of Keter Publishing House Ltd.) and office supply retailer Kravitz Ltd. have collapsed. Many problems arose during the two months of negotiations, and there were signs last week that they were on the brink of collapse. However, the entry of new parties revived Arledan and Kravitz's wish to acquire financially troubled Steimatzky.
Earlier today, parties close to Steimatzky said that the talks with Arledan and Kravitz were terminated because there were better offers.
However, it appears that not Steimatzky and its owner, Markstone Capital Partners Group LLC, but Arledan, called off the negotiations, even though, yesterday, Markstone secured promises from some of its investors to release liens that blocked Steimatzky's sale.
A source close to Kravitz said today, "The company has concluded that Steimatzky's condition will prevent its acquisition with court intervention and protection from creditors."
As for the leak from Steimatzky that it had terminated the talks, the source said, "Kravitz and Arledan announced that they decided on the postponement, not Steimatzky. Steimatzky leaked that it initiated the termination only after Kravitz and Arledan's announcement to halt the negotiations."
Published by Globes [online], Israel business news - www.globes-online.com - on June 17, 2014
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