Markets in Brief

Ben-Zeev applauds Delek Auto sale to CEO

After the Delek Group confirmed a report in TheMarker that it's negotiating to sell half its holdings in Delek Automotive to CEO Gil Agmon, Clal Finance analyst Yuval Ben-Zeev chimed in with plaudits. "It's a most positive signal for investors," he said. Delek Group is reportedly selling the shares with a control premium of 20% above Delek Automotive's share price, or NIS 50, which is also Ben-Zeev's 12-month price target. Ben-Zeev added that the transaction shows Agmon's firm faith in Delek Automotive, which imports Mazda and Ford vehicles to Israel. (Michael Rochvarger )

Can-Fite gets nod for Phase III trial

Can-Fite Biopharma has received confirmation from the U.S. Food and Drug Administration to begin Phase III clinical trials of its flagship drug, CF101, being developed to treat dry-eye syndrome. The company has to prove the drug is efficacious among a wide range of new patients, starting with 300 in the U.S., Europe and Israel with a range of characteristics, who will take the medicine for six months. Before the drug can obtain final approval it needs to pass testing on about 500 patients, Can-Fite says. (Vadim Sviderski )

Tower on track for $45 million R&D grant

The ministers of finance and industry are leaning toward more government assistance for TowerJazz. Technically, the ministers have instructed the Investments Encouragement Center to discuss the company's request. TowerJazz, originally known as Tower Semiconductor, had earlier hoped to get as much as $90 million. Now it and the state officials are discussing a grant half that size. In 2000, Tower received approval for a $250 million grant from the state, but the company failed to meet milestones and received only part of the money. Tower would like to receive the outstanding amount, but the government said it doesn't have to give the company anything. Any aid received now would be in the form of a new grant entirely, irrespective of the original grant agreement. (Ora Coren )

IPC repeats: 5.71 TCF at Sara, Myra fields

The Israel Petroleum Company, which owns a 13.6% stake in the license areas Myra and Sara, published assessments for the two fields in its financial statement for the second quarter of 2010. Based on two-dimensional tests carried out in the past and raw data from later three-dimensional seismic tests, IPC and its partners (including Israel Land Development Corporation with a 48% interest, and IDB with a 5% interest ) surmise that Myra has 4.24 trillion cubic feet of gas and Sara has 1.47 trillion cubic feet of gas. (Lior Zeno )

But Modiin says not to read into numbers

IDB, one of the partners to the Myra and Sara prospects, has holdings in the exploration partnership Modiin, which released a statement saying IPC's assessment shouldn't be counted on. "Based on the analysis of the partners' expert advisers, initial processing of the results cannot lead to any conclusions regarding the existence of reservoirs at the site, or regarding their size," Modiin said. (Lior Zeno )

Kardan sells two Warsaw office buildings

GTC, a subsidiary of the Kardan real estate group, yesterday announced the sale of two buildings in Warsaw's central business district for 79 million euros. The buildings are named Topaz and Nefryt. GTC says the return on its investment was 7.2%. The buyer is a real estate fund called RREEF, which owns and manages commercial and residential properties. For the first half of 2010, GTC reported earnings before tax and financing costs of 50 million euros, an increase of 226% against the same period of 2009. Its turnover however shrank 7% year over year to 78 million euros. (Yoram Gabison )

Fortissimo happy with sale of Formula

Emblaze last week agreed to sell its controlling interest in Formula Systems to Asseco Poland, Europe's fifth-biggest software group, which leaves the group bereft of a major revenue driver. Yet Yuval Cohen, founding and managing partner at Fortissimo, one of Emblaze's biggest shareholders, thinks the deal is fantastic for Emblaze. Further growth potential had been pretty much exhausted: When Fortissimo got into Emblaze, Formula was worth $70 million, and Asseco will be paying up to $145 million. Emblaze could use the money for an acquisition, Cohen suggests. (Nir Zalik )

Migdal Capital Markets likes Bezeq

Amir Adar, a sell-side analyst at Migdal Capital Markets, has downgraded his recommendation for Partner Communications to Sell, and set his 12-month price target at NIS 61. His favorite stock in the telecoms sphere is Bezeq. Looking just at the TA-75 index, his pick is NetVision. HOT received an upgrade to Buy because of the hefty discount at which it's trading, says Adar. (TheMarker )

Slight delay in Solbar Nebraska deal

Solbar Industries, which mainly makes soy products, says there has been a delay in transferring assets in Nebraska to its possession. In August, a Solbar subsidiary in the U.S. signed an agreement to buy a plant in South Sioux City for $16 million. Possession is now scheduled to be transferred tomorrow, Solbar says, and there are no other changes to the deal. (TheMarker )