Markets in Brief

Institutionals dabbling in black gold fever?

Are institutional investors dabbling in pure speculation? Turnover in Ratio Oil & Gas Exploration has been sky-high since the start of June - and it turns out that Israeli institutional investors are behind the leap in trading volumes. Until then, the institutionals had by and large eschewed shares and participation units of oil exploration companies such as Ratio, Avner, Delek Drilling and Isramco, which are considered highly speculative (not to mention highly volatile ). They wouldn't even stoop to analyzing these securities, on the grounds that the companies didn't have any proven operations to speak of. It seems the status quo has changed, but the institutional investors seem to be speculating on their own behalf, not imperiling investor money, says one trader. In the last month Ratio's share price has risen 19%. (Lior Zeno )

Elbit Imaging raises NIS 160 million from institutionals

Now onto a completely different Elbit, the one belonging to real estate baron Moti Zisser. Elbit Imaging said on Wednesday the institutional phase of its NIS 200 million series G bond offering has concluded well. In a Dutch auction, institutional investors subscribed for the entire 80% of the offering allotted by law to institutional investors - NIS 160 million. Following the public phase, Elbit Imaging says it expects NIS 188 million in net proceeds. Midroog had rated the bonds A2/Negative. (TheMarker )

Elbit Systems modifies cash offer for ITL stock

Elbit Systems has changed the terms of the cash tender by its wholly-owned subsidiary Elbit Security Systems to buy shares of I.T.L. Optronics. Elbit Security Systems will pay NIS 6.63 per share instead of NIS 5.85, which should cost it nearly NIS 12 million. The offer remains in force through August 4, as had been the case before, Elbit Systems adds. (TheMarker )

CEVA says revenues rise, profit falls in Q2

CEVA, which licenses silicon intellectual property and DSP cores for cellphones and consumer electronics, reported second-quarter revenues of $10.6 million yesterday, up 16% from the same period the year before. The company netted $2.1 million, or 10 cents per share, down 8% from a year earlier. The reason, CEVA explains, is that in the second quarter of 2009 it booked a pretax capital gain of $1.9 million on selling its shares in GloNav to NXP Semiconductors. It adds that during the second quarter it achieved nine new licensing agreements, all for DSP cores, platforms and software. (TheMarker )

Wood Group may replace Turkish Zorlu in Dorad job

Israel's cooling relations with Turkey may affect business at Dorad. The company, which wants to build a private-enterprise power station, is in advanced negotiations with Wood Group to actually do the construction, in exchange for $870 million. If they close terms, Wood Group would be hired in the stead of Turkish engineering giant Zorlu, which owns 100% of the planning and construction company for the power station, as well as 25% of Dorad itself. London-traded Wood Group, a giant with 28,000 employees worldwide, would take over just the planning and construction company. (Avi Bar-Eli )

Starplast seeking partner

The Schwartz family is looking for a new partner in plastics company Starplast. It hopes to close a deal at a company value of more than $80 million. Starplast has a plant in Alon Tavor that makes plastic furniture and goods for the house and garden, not to mention a wide range of toys. The company was founded 55 years ago and sells worldwide. In 2005 a fire burned down the plant but the family rebuilt, including with the help of government grants. In 2009 it generated sales of $74 million, says founder Senior Schwartz, who now runs the company with his three children. More than 90% of its products are exported, mainly to the United States and Europe. It expects to increase sales by 25% this year, says Schwartz. (Sharon Shpurer )

Bezeq: The view from abroad

U.S.-based Research and Markets has created a new coverage category: Israel's Telecoms, mobile and broadband, a sphere that has undergone "enormous upheaval" in the last two years, marked by changes in ownership and mounting competition, notably in the mobile sector - which has hurt average revenue per user. A main point in the report is that while Bezeq remains the leader in the Israeli fixed-line market, it has lost so much ground to providers of voice-over-Internet that the regulators may lift restrictions on its operations. Bezeq is fighting to compensate for loss of income with its Next Generation Network, "fiber to the curb," and expects to have half the nation hooked up by the end of 2010 and 90% by the end of 2012, says the Research and Markets report. (Reuters )