Clal Industries sale stops IDB rot

The NIS 1.27 billion sale of 50% of Clal Industries and good results from Clal Insurance have boosted the troubled group on the TASE.

Trading on the Tel Aviv Stock Exchange opened negatively this morning, with the Tel Aviv 25 index currently down 1.11%, at 3.8162. However, the slide in IDB Holding Corp. Ltd. (TASE:IDBH) and its subsidiaries has at least temporarily halted, thanks to the announcement that the group is selling 50% of Clal Industries and Investments for NIS 1.27 billion, representing a premium of 41% on the market price of the shares, to Len Blavatnik's Access Industries . Meanwhile, another IDB group company, Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), reported a 48% rise in first quarter profit, in comparison with the first quarter of 2011, to NIS 43 million. IDB Holding is up over 13% and IDB unit Discount Investment is up over 10%, and there are sharp rises in IDB group bonds.

Elsewhere, there are sharp declines in Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) (despite a recommendation from Jay Srivatsa of Chardan Capital Markets that sees 204% upside in the stock), Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA), Mellanox Technologies Ltd. (Nasdaq:MLNX; TASE:MLNX), NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE), and Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL).

Published by Globes [online], Israel business news - www.globes-online.com - on May 20, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018