Prime Minister and Acting Finance Minister Ehud Olmert has decided to transfer his authority regarding the privatization of Bank Leumi to Justice Minister Daniel Friedmann.

Olmert made the decision in conjunction with the treasury's legal adviser as well as Justice
Ministry officials. He received his powers in the matter after he replaced Abraham Hirchson, who decided to take a leave of absence from the Finance Ministry in the wake of criminal investigations against him.

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The prime minister decided to refrain from involvement due to a conflict of interest, as he is presently under police investigation for allegedly influencing the Leumi tender to favor his friends and associates.

The cabinet was notified of the transfer of powers, and will have to approve it at its weekly meeting next Sunday.

The main issue facing Friedmann in the matter will be the decision whether to extend the option granted to the Cerberus-Gabriel fund to buy an additional 10.01 percent of Leumi shares. Cerberus has requested an extension past the May 24 deadline, since it has not yet received approval from the Bank of Israel to purchase control of Leumi.

Friedmann is expected to accept the recommendations of the head of the professional staff studying the matter at the Finance Ministry, and ministry director general Yarom Ariav. They are said to be against granting the extension.