Chinese Company Refuses to Pay Break-up Fee if Clal Insurance Sale Collapses

Microlink, the only remaining bidder to buy control of Clal Insurance, has rejected a demand by seller IDB Development Corporation to pay the fee.

Ofer Vaknin

China’s Microlink, the only remaining bidder to buy control of Clal Insurance, has rejected a demand by seller IDB Development Corporation to pay a break-up fee if the prospective sale collapses.

IDB faces a government-imposed deadline of December 31 to reach a deal to sell control of Israel’s second-largest insurer, but the prospects of meeting it look increasingly slim after two other bidders for Clal have dropped out in the last two weeks.Microlink has offered 2.48 billion shekels for 55% of Clal.