Sources inform ''Globes'' that Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) has bought an additional 1.4% of income-producing real estate owner British-Israel Investments Ltd. (TASE: BRTS), after buying a 4% stake six months ago. British Israel shareholders Edgar and Adam Bronfman sold shares for NIS 37 million, of which Migdal bought NIS 25 million.
The purchase turns Migdal into a party at interest with a 5% stake in British Israel, even after the holding was diluted last month when Matthew Bronfman's Bronfman Fisher Investments Ltd. invested in British Israel.
Migdal bought most of the shares offered by Edgar and Adam Bronfman. They sold the other shares to institutional investors with small holdings in British Israel. Sources believe, however, that Migdal may buy more shares in the company.
Migdal reportedly bought the shares at NIS 10 per share, just below British Israel's opening price of NIS 10.19. British Israel's share fell 0.1% by midday today to NIS 10.18, giving a market cap of NIS 1.7 billion. Migdal's share fell 1.8% to NIS 7.07, as part of the general market slide.
Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) unit Harel Finance Ltd. and IBI Investment House Ltd. (TASE:IBI) distributed the Bronfman's shares .
Migdal was unavailable for comment, and the Bronfman's spokesman declined to comment.
Published by Globes [online], Israel business news - www.globes-online.com - on January 12, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010