Tel Aviv Stock Exchange.
Outside the Tel Aviv Stock Exchange in Tel Aviv, Israel, August 13, 2013. Photo by Bloomberg
Text size

Teva faces big new generic rival, thanks to its former CEO

Israel’s Teva Pharmaceuticals gets a bigger rival in the generics markets after India’s Sun Pharmaceuticals agreed on Monday to buy generic drug maker Ranbaxy Laboratories for $3.2 billion. The all-share transaction, the biggest pharmaceutical sector deal in the Asia-Pacific region this year, will create the world’s fifth-largest maker of generic drugs, with combined sales of $3.3 billion, compared with Teva’s $9.2 billion. The acquisition comes as the pace of consolidation increases in a market that’s primed for growth in the U.S. and emerging markets and could be worth $335 billion globally by 2017, according to Lucintel. The executive largely credited with pulling off the merger is Sun’s chairman, former Teva CEO Israel Makov. Sun face quality glitches that got Ranbaxy’s India-made drugs barred from the United States. Teva shares closed 1.1% higher, at 185.90 shekels ($53.27) in Tel Aviv. (Yoram Gabison and Michal Ramati)

Seminar on London IPO market

Responding to a growing interest by Israeli companies in going public in London, executives of the London Stock Exchange’s AIM market will be holding a seminar on the British initial public offerings market on Tuesday, in conjunction with the Israel-British Chamber of Commerce. London has attracted Israeli companies like the Plus500 financial trading platform, though digital ad firm Matomy pulled its planned offering last week. “Regulation in London is easier because [financial] reporting is done semi-annually and not quarterly,” said Anita Leviant of LA Global Consulting, one of the co-sponsors of the session. She added that the Sarbanes-Oxley regulations don’t apply to the London stock market. But Roee Eizenman, CEO of Migdal Underwriting, warned that it was harder to conduct follow-on offerings. (Eran Azran)

U. Dori Construction to delist after four years as a public company

Four years after it went public, U. Dori Construction is on its way to being delisted from Tel Aviv Stock Exchange trading, its parent company, Dori Group, said on Monday. U. Dori has lost almost half its market capitalization since its stock began trading in 2010, and is worth about 120 million shekels ($34.4 million) on Monday. Dori Group said that subject to approvals, it would offer to buy back minority shareholders with its own shares at a ratio of 1:1.95. Based on the opening price of 1.83 shekels Monday morning, U. Dori shareholders would be getting about the market value of their shares. U. Dori shares rose 6.5%, to a closing of 3.49 shekels on Monday. (Eran Azran) 

Tel Aviv shares end mixed, with biotechs down

Tel Aviv shares ended mixed on Monday, resisting a broad decline in world stocks. The Tel Aviv Stock Exchange’s benchmark TA-25 index was down most of the day but eked out an 0.08% rise at closing, to 1,422.39 points. Some 1.26 billion shekels ($361 million) in shares changed hands. The TA-100 finished 0.1% lower, at 1,298.25, with biotechnology shares pacing the decline. Mazor Robotics led the TA-25 companies on the decline, finishing 4.7% lower, at 34.56 shekels. Clal Biotechnology lost 2.9%, to 12.51 shekels, and PhotoMedex lost 2.8%, to close at 52.19 shekels. Among the top gainers, Oil Refineries rose 3%, at 1.03 shekels, and Paz Oil added 1.7%, to 5.48 shekels. Satellite operator Spacecom rose 1.3%, to 66.94 shekels, after it said an unidentified European customer for its Amos 4 and 6 satellites had extended its agreement with the company, which will generate $29 million in revenues. (Dror Reich)

Dollar and euro make gains on the shekel

The dollar and the euro both posted strong gains on the shekel on Monday, even as the dollar fell against major currencies after last week’s slightly lower-than-expected U.S. payrolls data. The greenback added close to 0.5% to a Bank of Israel rate of 3.4930 shekels and the euro appreciated 0.65% to 4.7954 shekels. In late trading, however, the dollar settled back to 3.4812 and the euro to 4.7846. Currency trader FXCM said that despite the U.S. currency’s strengthening globally, short sellers remain the dominant force in the market. (Dror Reich)