Treasury to halt IMI sale talks with Elbit

IMI Systems

Accountant General: There are no complete valuations on which the privatization negotiations can be based.

Ministry of Finance director general Shai Babad intends to stop yesterday's decision by the tenders committee for the sale of Israel Military Industries Ltd. (IMI) to begin negotiations with the sole candidate for acquiring the company from the state - Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT), sources inform "Globes."

The decision to begin negotiations was taken by a narrow majority of 3-2. The three votes in favor were by Government Companies Authority director general Ori Yogev, his deputy, and the Authority's legal adviser. The two votes against were by Ministry of Finance Accountant General Michal Abadi-Boiangiu and legal advisor Asi Messing.

Sources involved in the negotiations told "Globes," "This is a farce that must be stopped. The Accountant General has an absolute veto in the matter, because if these negotiations succeed, and it is decided to sell IMI to Elbit Systems, she will have to sign the sale agreement in the state's name. If she opposes such negotiations, how can she then sign the sale agreement?"

Abadi-Boiangiu raised questions a long time ago about how the IMI tender was conducted. Among other things, she cited the absence of an opinion by Antitrust Authority director general Michal Halperin and the absence of complete valuations on which the sale negotiations can be based.

The Accountant General's position is supported by colleagues in the Ministry of Finance budget department.

Published by Globes [online], Israel business news - www.globes-online.com - on August 2, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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