Leviev moving to buy IBI, Analyst

Real estate and diamond magnate Lev Leviev wants to become a major force in the local money management industry. Leviev's company Africa Israel has begun negotiations to buy Israel Brokerage and Investments (IBI) and Analyst, two leading investment firms.

At this stage, the chances of a deal for IBI look better, though there's no certainty that any deal will be done.

Africa Israel might merge the investment firms with its own Africa Israel Investment House.

News of the negotiations apparently leaked to the market yesterday, and share prices of the two investment houses began to soar. IBI closed the day with an increase of 8.92% in its share price, while Analyst rose 8.25%.

Leveiv has been maneuvering to gain influence in Israel's financial markets for two years. He bid to buy the controlling interest in Bank Leumi from the state in late 2005, but lost that race.

A month after the tender, he negotiated with Leumi for the purchase of Psagot Ofek Investment House, which was finally sold to York  Capital Management. At the same time, Africa Israel established a new investment firm, which has raised about NIS 2 billion in assets to manage.

IBI, owned by Zvi Lubetzky, Emanuel Kook and David Weisberg, manages about NIS 11 billion in mutual funds, provident funds and portfolios.

Analyst, owned by Shmuel Lev and Ohad Shiloni, manages NIS 10.2 billion.