With a 1,100% gain, a sale would take Bank Leumi's profits higher than Bank Hapoalim's for 2011 .
Bank Leumi (TASE: LUMI) plans selling part of its holding in Israel Corporation (TASE: ILCO). Sources inform "Globes" that Bank Leumi plans selling 3-4% of Israel Corp., for about NIS 1 billion. The sale will yield Bank Leumi a capital gain of about NIS 400-500 million and enable it to report higher profits than Bank Hapoalim (TASE: POLI) in 2011.
In response, Bank Leumi said, "At the moment the subject is not on the table."
Bank Leumi bought 17.8% of Israel Corp. in 1999 for NIS 660 million. The company, controlled by the Ofer family, currently has a market cap of NIS 28.5 billion. A sale would yield Bank Leumi a return of 1,100% on its investment.
Published by Globes, Israel business news - www.globes-online.com - on July 3, 2011
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