Accountant General Shuki Oren has rejected the request by Shlomo Eliahu, Bank Leumi's (TASE: LUMI) largest private shareholder, for the immediate sale of the government's entire 11% holding in the bank. Oren said that the sale of the government's stake was not the same as a sale of the controlling interest in the bank, because the holding was relatively small. He made the comment at the "Globes" Capital Markets Conference held in Tel Aviv today in conjunction with BDO Ziv Haft.
Oren hinted that the sale of the government's shares would go ahead after Bank Leumi's general shareholders meeting on June 2. "It's possible to sell the Bank Leumi shares today, but it is naturally necessary to wait for the arrangement of the new board of directors, at which point it will be possible to sell the shares," he said.
Oren directed a jab at Eliahu, saying, "Someone petitioned the High Court of Justice to order us to sell the shares now. I think that the shares should be sold, but at market conditions, not immediately."
Oren said that it was necessary to review the issue of the controlling cores in the banks. "The entire rationale that was accepted in the past, which was that you need a controlling core at a bank so that there is address to turn to, is now in question."
Published by Globes [online], Israel business news - www.globes-online.com - on May 5, 2010
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