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Delta Galil Industries (Nasdaq: DELT) founder and leader Dov Lautman is reducing his share in the company to 11.4%, by selling 13.3% of the company's shares to his partner Isaac Dabah.

Thirty-two years after founding the company, but mainly because of his health, it's time for him to retire, Lautman explains. In the last two years Dabah has served as the company's chairman.

The transaction reduces Lautman's stake to 11.4%, as said, while Dabah's increases to 41.9%.

Lautman will be selling the shares at a share price range of $8 to $10, totaling between $22 million to $25 million. The price for the transaction will be finalized only on December 31, 2008, though Dabah will be paying most of the money within a matter of days.

Delta Galil shares start today at $6.50, after a 24% slide from the year's start. Its market cap is presently $523 million.

Delta stock

Other major shareholders in Delta include Clal Insurance (TASE: CLIS), which owns 7.6%, and Menorah Holdings (TASE: MORA)http://www.themarker.com/eng/tools/toolsResult.jhtml?application=8&chosen=566018, which owns 5.8%.

Dabah also owns 15% of property development company Habas HZ Investments (TASE:  HBS) and a clothing retail chain in the U.S. which has 385 outlets.