Daily roundup / Pentagon letting Israeli systems onto U.S. warplanes
Allot acquires Oversi, Industrial Building still sticking around Toronto, a departure from Africa Israel, and the Ministry of Industry and Trade gives birth to Metro 450.
Pentagon smiles on Israeli warfare systems: The Pentagon has rescinded its years-long objection to Israeli electronic-warfare technology being installed in America's fighter jets. Reuters says the Pentagon smiled on a $450 million deal for Lockheed to stick Elbit's systems into U.S. fighters starting in 2016. That in turn helps Israel's plan to buy 19 F-35 fighters for $2.75 billion, with an option to buy 75 more, as long as they can have their homegrown systems installed. Now that's possible. Also, the Pentagon's about-face could open doors to Elbit subsidiary Elisra in the U.S. market for electronic warfare systems.
Allot Communications buying Oversi Networks: Allot Communications, an Israeli company listed on Nasdaq, announced on Tuesday morning the acquisition of Oversi Networks, which builds data caching systems and content delivery software for Internet video and peer-to-peer users. The acquisition will set back Allot $16 million in cash, plus $5 million more based on performance. The idea is to improve its video offering with technology from Oversi, which was founded in 2004.
Harel likes Teva: Analyst Steven Tepper of Harel Finance likes Teva Pharmaceutical Industries, on Tuesday issuing a Buy rating for the Israeli drug company. On Thursday Teva will be filing its sqq financials: Tepper predicts a "good report" with revenues of $5.13 billion and net profit of $1.34 per share. 'Tis true that revenues contracted in crisis-stricken Europe, he says, but results were boosted by the acquisition of Cephalon, more acquisitions in Japan and "significant" generic launches in the U.S. Tepper, who feels Teva is trading at a fairly low profit multiple compared with its peers, set its 12-month price target at $55 and notes that the market awaits a strategy announcement from the new CEO.
Industrial Building cancels Toronto exit, for now: Eliezer Fishman's real estate company Industrial Building Corp says terms couldn't be reached on its putative sale of Chalkfarm. Last month the company reported negotiations to sell the property for C$70 million. But make no mistake, Industrial Building is looking for other buyers for the property, which includes 1,214 apartments and boasts 96% occupancy.
How fast four years pass: When taking the job as chief executive of the Africa Israel real estate group in 2008, Izzy Cohen stated that he likes a challenge and that he was taking the job for the long-term. Yet a month after the rumor mill began to churn, Cohen, who'd been with the Migdal insurance group for 30 years beforehand, is moving on. Sources near Africa Israel say Cohen's relations with group owner Lev Leviev began to cool last September when Leviev read in the press that a different insurer, Clal Insurance, was wooing Cohen. Since then it just hasn't been the same for the two men, says the source.
Money allocated to make better chips: The "Magnet" technology-advancement program at the Ministry of Industry and Trade has approved the establishment of a confederation, called Metro 450, to adapt Israeli industry to the rigorous demands of new-generation semiconductor manufacturing technology. Metro 450 received an NIS 60 million budget over three years. It incorporates industry leaders including Applied Materials Israel, Nova Measuring Systems, Jordan Valley, Intel Israel, Nanomotion, and 15 research groups including those at Ben Gurion University of the Negev, Tel Aviv University, the Technion (in Haifa) and the University of Haifa (also in Haifa).
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