Daily roundup / Charity big winner of IDB group class-action settlement
Discount Investments settles a class-action motion, MALAM-Team votes retoactively on manager Shlomo Eisenberg's pay, Tel Aviv stocks gain - a little.
Discount Investments class-action settled: Charity is the big winner in the settlement of the NIS 272 million class-action motion against Discount Investment Corp, a member of the IDB group. The claim against the company, its officers and owners dies under the compromise that was finally hashed out. The Discount Investment shareholders get zip. Discount Investments pays the lead plaintiff NIS 750,000 and his lawyer NIS 3.2 million – and over four years, will pay NIS 18 million to a nonprofit association to be founded, to help the poor. The lead plaintiff, Yakov Sabo, and his lawyer will be among the association's managers, together with some retired justice, yet to be chosen (or to agree). The claim stemmed from a huge rights issue relating to shares of Koor, a subsidiary of Discount Investments, back in 2008, which Sabo said badly disadvantaged shareholders.
MALAM-Team revisiting leader's pay: The general shareholders assembly at MALAM-Team, Israel's third-biggest IT company, will be voting retroactively on the compensation of lead business manager Shlomo Eisenberg. If they nix his pay package, Eisenberg will have to return NIS 2.8 million to the company, for pay received between 2006 and 2011. Why now? Because the Israel Securities Authority is peeved that when Eisenberg morphed from chairman into head business manager, the company didn't bring his new employment terms before the shareholders. Also, says the watchdog, Eisenberg's return to the company after seven months' hard time in and of itself requires ratification of his employment terms. (You are wondering, so here you go: In September 2004, Eisenberg was found guilty on a number of counts of misreporting and accepting ill-gotten gains.)
Mellanox, if not for you…: From the start of the year, the Tel Aviv-25 index has gained 0.7%. That isn't much. But if the contribution of three shares – Mellanox, Perrigo and Israel Chemicals – are deducted, then the benchmark index has fallen 25% this year. Mellanox has gained 219% (its weight on the TA-25 is now 10.1%); ICL is up 21% (its weight is 11.1%) and Perrigo has added 24% (weight: 11.3%). Now you know. Among the dogs this year are mobile operators Cellcom and Partner, each of which lost more than 60% of its value as competition raised its hairy head. Energy and property empire Delek Group lost 26% and malls-builder Azrieli Group lost 9%. As protests over the cost of living threatened to escalate, shares of Strauss Group foodmaker plunged 25% and Osem dropped 13% from the start of the year.
As last week rolled to a close, the primary market turned lively, after a 3-month hiatus. Is risk back in fashion? Are corporate bonds sweet as candy again? Four real estate companies - Alrov, Housing & Construction, Melisron and Electra Real Estate - reported over-subscription to debt offerings. But the underwriters caution against assuming the tide has turned: All four are big, stable companies. "These debt offerings are the exception that attest to the rule," shrugged Shay Nevo of Leumi Partners Underwriting, adding that none of the four are owned by "tycoons" in the eye of the debt-arrangement debacle.
With reporting by Shelly Appelberg and Michael Rochvarger