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A family dispute in the Dankner clan is holding up the appointment of a third director to the board of Bank Hapoalim. This is because the family controls Israel Salt Industries which holds 11.6 percent of the country's largest bank and is entitled to nominate the director.

When Salt Industries bought the Hapoalim stake off Arison-Dankner in September 1997 it became entitled to two seats on the bank board. Over the years the company gradually improved its holding in the bank, giving it an extra director's seat, but until a family contretemps is resolved, only Danny and Nochi Dankner will represent the company.

Salt Industries is owned by six Dankner households that are engaged in a complex corporate reorganization centering around the sale of the family's public holdings in Dankner Investments, Salt Industries and Dor Chemicals to the Ellern group.

An official request for approval of the Ellern deal was submitted to the Bank of Israel before the weekend. However, the deal has not met with family-wide approval, and disagreements remain.