Credit Suisse bank in Zurich.
Credit Suisse bank in Zurich. Photo by AP
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Koor Industries advised the Tel Aviv stock exchange Friday of a revised upward valuation of Koor's holdings in Credit Suisse, the Swiss banking firm whose stock has been steadily rising.

Koor is controlled by the IDB group's Discount Investment Corp. and IDB Development Corporation.

Credit Suisse is the second-largest bank in Switzerland and, along with Makhteshim Agan - the Israel-based agrochemical firm - is considered one of Koor's most promising assets when it comes to their future value.

According to the reports, as of Saturday Koor was said to hold about 30.3 million shares of Credit Suisse, an interest of about 2.3% of the giant firm. Koor's holding in the banking corporation had a fair market value, as of the end of September, of about NIS 2.51 billion.

The 15.4% rise in the value of stock of Credit Suisse between June and the end of September is expected to result in Koor's reporting a profit of about NIS 328 million. Since then, however, Credit Suisse's share price has climbed a further 10%. This would put the current value of Koor's holdings at NIS 2.72 billion, and in the process hand the Israeli company an additional gain of NIS 214 million.

If that gain is recognized by the company, it will appear in its fourth quarter earnings report.

As reported by TheMarker, the American hedge fund group York Capital Management had bought up 20% of IDB Development's total bond debt, with a face value of NIS 800 million. The move followed months of declines in the value of IDB bonds. IDB Development controls a long list of major companies that are familiar names to the average Israeli consumer, including Super-Sol supermarkets and Cellcom, the cell phone service provider.