In New Blow to Dankner, Argentinian Investor Withdraws IDB Investment Offer

Eduardo Elsztain had been expected to invest some NIS 700 million in IDB.

Send in e-mailSend in e-mail
Send in e-mailSend in e-mail

Argentinian investor Eduardo Elsztain has backed out of his planned investment in Nochi Dankner’s financially troubled IDB Holding Corporation, Dankner informed the company’s bondholders Thursday night.

Dankner said he would give bondholders a new proposal for a debt arrangement in the next few days. He said that other Israeli and international investors plan to invest hundreds of millions of shekels in IDB, and the money will be deposited in an escrow account early next week.

But so far, who these investors are remains unknown, as does the seriousness of their intentions.

Elsztain, who invested $25 million in IDB’s parent company, Ganden Holdings, last September, had been expected to invest some NIS 700 million in IDB, together with other investors.

A source close to the company said that Elsztain “has had it with the Israeli economy. But we believe that by Sunday, everything will be clearer and Dankner will present his alternative to the investors.”

Sources close to IDB’s bondholders said they weren’t yet sure whether Elsztain’s withdrawal was for real, or just a ploy to intimidate them.

In nonbinding votes, more than 90% of IDB’s bondholders indicated Thursday, before they learned Elsztain was backing out, that they would rather take over the company than reach a deal with Dankner.

Eduardo Elsztain.Credit: Bloomberg
From left: Nochi Dankner, Rabbi Yoshiyahu Yosef Pinto, and Argentinean real estate magnate Eduardo Elsztain.Credit: Assaf Saar Global

Click the alert icon to follow topics: