Business in Brief

Bright Food gets more time to buy Tnuva; Mobileye soars on Tesla speculation; Teva rumored to be eying rival Mylan.

Moti Milrod

Bright Food gets more time to buy Tnuva

China’s Bright Food has received a three-month extension to complete its planned acquisition of Tnuva, Israel’s biggest food company, said a shareholder in the Israeli firm on Sunday. Bright Food now has until January 5 to buy control of Tnuva from the British private equity firm Apax Partners, said investment group Mivtach Shamir Holdings in a statement to the Tel Aviv Stock Exchange. It did not provide further details. “We believe the deal will close,” said a source who asked not to be named. If Bright Food does not go ahead with the purchase at this point, which was agreed to last May, it will have to pay a fine of up to $40 million, the source said. Bright Food wants more time to evaluate Tnuva’s latest financial results with the aim of seeking a reduction in the final price. Mivtach shares rose 4.6% to a close of 116 shekels ($31.41). (Reuters)

Mobileye soars on Tesla speculation

Shares in Mobileye, the Israeli maker of vehicle-collision preventive technology, soared last week amid speculation that the newest Tesla Motors car will use its technology. Mobileye stock rose 13% last week to close in New York at $57.50 on Friday after Tesla CEO Elon Musk said on Twitter on Oct. 1 that it was “about time to unveil the D and something else,” showing a photo of a car peeking from behind a garage door with a stylized D on it. Trip Chowdhry, an analyst at Global Equities Research, said in a note Friday that Musk was talking about the Model 3, a mass-market electric vehicle he will unveil at an event this Thursday in Los Angeles. “It looks like this collision-avoidance system will be in Tesla’s new model S,” Chowdhry told Bloomberg News. (TheMarker Staff)

Teva rumored to be eying rival Mylan

Teva Pharmaceuticals was rumored at the end of last week to be eyeing an acquisition of Mylan, a fellow maker of generic drugs as part of an industry consolidation, although analysts following the U.S. company said such a tie-up was unlikely. JP Morgan told clients in a note on Friday that it saw Mylan remaining independent, while Wells Fargo analyst Michael Faerm said a major generics acquisition is not likely Teva’s first choice and would not significantly alleviate Teva’s growth problem. A spokeswoman for Teva told Reuters that the company does not comment on market rumors. Mylan did not immediately respond to a request for comment. Nevertheless, the rumors caused a surge of activity of Mylan options and drove its share price up 8% on Friday. Teva shares finished up 1.3% at 201.30 shekels ($54.67) yesterday. (TheMarker Staff)

Bourse to launch contract on TA-100

The Tel Aviv Stock Exchange said Sunday it would begin trading options andfutureson its TA-100 index January 29 as it seeks to attract new investors and boost liquidity by adding new financial products. The new contract will add to derivatives trading the TASE offers for the blue chip TA-25 index, 10 TA-25 companies, as well as for its banking index and on dollar-shekel and euro-shekel exchange rates. Contracts will be offered for one, two and three months, with a position limit of 30,000 contracts, the same as the TA-25. “Since the TA-100 is perceived as representing Israel’seconomy, especially in the eyes of foreign investors, the new derivatives trading is expected to increase the attractiveness of investing in the Tel Aviv bourse,” said Ruby Goldenberg, director of trading, derivatives and indexes. (Shelly Appelberg)

Tech shares lead rally in Tel Aviv shares

Technology shares led sharp gains on the Tel Aviv Stock Exchange Sunday. The benchmark TA-25 index finished up nearly 1.1% at 1,466.64 points while the TA-100 added 1.4% to a finish of 1,315,97 on turnover of 578.5 million shekels ($156.6 million). TowerJazz led TA-100 stocks higher, ending 8.5% higher at 38.06 shekels. Perion Network followed with a 7.2% gain to 20.72 and Silicom with a 5.6% advance to 114.30. In the fixed-income market, the treasury sold 700 million shekels of bonds. In foreign currency trading Friday, the dollar weakened close to 0.8% to a Bank of Israel rate of 3.6440. (Shelly Appelberg)