Daniel Blum buys back FMS shares from Clal Insurance
He repaid the price he'd received before the 27% plunge in FMS stock due to bad news
Exactly a week after FMS Enterprises Migun (TASE: FMS) published awful results for the second quarter of 2006, and revealed a delay in a hugely important contract, and sent its stock into a tailspin - its controlling shareholder, Daniel Blum, has effectively annulled a deal selling NIS 59.1 million worth of shares to Clal Insurance (TASE: CLIS).
Blum had struck a deal a month and a half beforehand, for Clal Insurance to buy NIS 59.1 million worth of FMS shares from him personally.
After the capital market erupted in umbrage, claiming that Blum probably knew of the delays in the contract with the American army in advance of the sale (which he firmly denied), Blum has reversed the deal.
He simply bought back the 300,000 shares he'd sold Clal Insurance at the same price the IDB group company had paid: NIS 197 per share.
In short, Blum paid the price of the shares before their 27% plunge after the release of the bad news.
News of his move sent FMS shares climbing 3% on Thursday.