Do some Mizrahi-Tefahot directors need lawyers? Shareholders of Mizrahi-Tefahot could wind up suing the bank's directors, based on biting statements by deputy supervisor of banks Zuriel Tamam in his draft report on governance at Mizrahi-Tefahot. Some of the directors prioritized their personal gain above the good of the bank, he wrote, which means they didn't do their duty by the bank. Their actions caused harm to the bank, the central bank writes in the report, but didn't quantify the damage. That said, given that Article 254 of the Companies Law states that directors must act in good faith and avoid any action smacking of conflict of interest, shareholders could have grounds to sue. Mizrahi-Tefahot does have executive liability insurance, but that only covers breaches of proper conduct that were made in good faith. In this case, that coverage may not apply.
Amdocs meets forecasts: Amdocs met forecasts for the third quarter of 2011. On Tuesday night the multinational software company reported a 1.2% year over year increase in revenues to $822 million, roughly as expected and in the middle of its guidance range. Profit adjusted for nonrecurring items was precisely as analysts had forecast, at $115.7 million, an increase of 4% against the same period of the year before. Operating profit crept up to $137 million, the company said. But it provided a chilly guidance for the next fiscal year, predicting a 2% to 5% increase in revenues and a 5% to 8% increase in adjusted net profit.
Orbotech losses soar: Losses at technology company Orbotech widened in the third quarter, the company said last night a week after announcing layoffs and $45 million in charges. The company, which makes kits to test flat screens and printed circuits during production, said third-quarter 2012 revenues sank 30% year over year to $99 million, though the drop from the second quarter was small. Rani Cohen, the company president slated to leave at year-end, commented that revenues had fallen short of expectations, which is likely to happen in the fourth quarter as well, because of the challenging business environment. The company posted a net loss of $45.7 million for the third quarter of 2012, compared to a net loss of $800,000 in the second quarter of the year and net profit of $14.7 million in the third quarter of 2011.
Mega Or to raise NIS 70 million: Mega Or Holdings, a real estate company that initiates, builds and manages shopping centers and industrial buildings, reportedly means to sell NIS 70 million in bonds in a matter of days, though it has yet to make a formal announcement. The company owns 10 malls, one industrial building and one logistical center and presently already owns bondholders about NIS 100 million. Investors seem confident: yields on the bonds are a low 4.4%. For the second quarter Mega Or reported netting NIS 7.6 million on revenues that increased to NIS 18 million, from NIS 14 million in the same period of the year before.
UPS Israel changes hands: The Maman cargo handling company is buying UPS Israel from the Livnat family and businessman Chen Lamdan for NIS 100 million. Technically the deal involves buying an 81% interest in OPSI, which holds the UPS franchise in Israel. Before the deal closes, the sellers are taking an NIS 46 million dividend. With that and an owner's loan from Maman to OPSI, in effect the deal reflects a company value of NIS 170 million for UPS Israel.
With writing by Sivan Aizescu, Orem Freund, and Vadim Sviderski
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