American International Group acquires Aurec's share in AIG Israel

Global insurance giant American International Group, which is better known as AIG, said yesterday it had agreed to buy out Aurec Group's 49.99% stake in AIG Israel. The deal, subject to approval by the commissioner for capital markets, insurance, and savings, will give the parent company a 100% stake. AIG Israel also announced the appointment of Shay Feldman as CEO in place of Hava Friedman-Shapira, who is stepping down. Feldman joined the company in 1998 and served as marketing director in Israel and for AIG Europe. AIG Israel was established in 1996 and offers a range of personal insurance policies, including vehicle and home insurance, through direct marketing channels. (Assa Sasson )

New Tnuva chairwoman will need to get by on just NIS 130,000 a month

The new chairman of the Tnuva dairy firm, Ravit Bar-Niv, will be taking home NIS 130,000 a month, the company's board has announced. Last month Bar-Niv replaced interim chairman Shmuel Even; he had stepped in for Shlomo Rodav, who resigned in April following a dispute with Tnuva's 57% owner, Apax Partners. Rodav received NIS 3 million in compensation for his six months as chairman, including a NIS 250,000 monthly salary and a NIS 1.5 million bonus; he was also to receive options for 1.25% of Tnuva's shares. Bar-Niv served as Shikun U'Binui chairwoman from 2007 to 2012; her 2011 pay costs reached NIS 6.7 million, including a NIS 150,000 monthly salary. She will apparently make 48% less than Rodav did, though her total pay costs will exceed his by 20% since Tnuva will cover the cost of her benefits. (Yoram Gabison )

Muzi Wertheim transfers Mizrahi stake to his son and daughter

Bank Mizrahi-Tefahot said yesterday 22% controlling owner Muzi Wertheim has transferred the entire stake to his children: 63% of it to son David and 37% to daughter Drorit. Wertheim holds a permit from the Bank of Israel to own a controlling stake in the bank, so the move needs the approval of the central bank. A year ago Wertheim transferred his Central Bottling Company holdings to his children along the same 63%-37% split. But their father still serves as an active director in the two organizations, while his children aren't believed to hold a position in the bank or take an active role in its management. (Sivan Aizescu )

Pelephone, HOT Mobile and Golan Telecom to receive frequencies for 4G service

The Communications Ministry plans to distribute bandwidths at 1,800 MHz to the three mobile phone operators still lacking frequencies in this range: Pelephone, HOT Mobile, and Golan Telecom. The ministry plans for these companies to pay according to their usage. Once the distribution is carried out, all Israeli cellular operators will have enough capacity to launch fourth-generation LTE networks. Without the additional bandwidth, the industry was expected to have exhausted its bandwidth capacity within two years. (Amitai Ziv )