The Ticker: Leumi Presses to Complete JEC Sale Soon

Mylan answers critics on Perrigo bid; Dankner debt talks with bank in final stretch; Paz profits more than double.

People walk past a branch of Bank Leumi in Tel Aviv in this February 18, 2009 file photo.
Reuters

Bank Leumi is pressing hard to complete the sale of Eliezer Fishman’s controlling 40% stake in property developer Jerusalem Economy Corporation to Beny Steinmetz. Fishman had pledged the shares as collateral against 1.5 billion shekels ($390 million) in personal loans he has struggled to repay. Leumi wants to wind up the sale by the end of August before JEC publishes its second-quarter financial statements for fear that auditors may attach a “going concern” warning to the report or that credit rating agencies will cuts its rating, either of which would complicate the bank’s efforts to recover as much as it can of the debt.  JEC itself has debts of 2 billion shekels. Steinitz has offered to pay Leumi as much as 400 million shekels for the stake, which would value the company at a slight premium to its depressed market capitalization of about 970 million shekels. JEC itself has debts of 2 billion shekels. Steinitz has offered to pay Leumi as much as 400 million shekels for the stake, which would value the company at a slight premium to its depressed market capitalization of about 970 million shekels. JEC itself has debts of 2 billion shekels. Steinmetz has offered to pay Leumi as much as 400 million shekels for the stake, which would value the company at a slight premium to its depressed market capitalization of about 970 million shekels. JEC itself has debts of 2 billion shekels. Steinitz has offered to pay Leumi as much as 400 million shekels for the stake, which would value the company at a slight premium to its depressed market capitalization of about 970 million shekels.JEC itself has debts of 2 billion shekels. Steinitz has offered to pay Leumi as much as 400 million shekels for the stake, which would value the company at a slight premium to its depressed market capitalization of about 970 million shekels. JEC shares dropped 7.5% to close at 11.08 shekels. (Michael Rochvarger)

Mylan answers critics on Perrigo bid

Facing criticism that its hostile takeover bid for Perrigo threatens to create a period of uncertainty, Mylan over the weekend said it was prepared to operate Perrigo as a “controlled subsidiary” if it wins only limited support for the offer from Perrigo shareholders. Some shareholder-advisory firms have warned that if Mylan wins between less than the 80% backing from Perrigo shareholders it needs to complete a takeover it would create “overwhelming and unacceptable risks” by stretching out the acquisition process and raising questions about corporate governance. Mylan has said it is ready to buy just 50% of Perrigo, if that’s all the votes it gets.  But on Friday, Mylan Executive Chairman Robert Coury said even with 50% his company “would have the ability  to effectively control Perrigo’s day-to-day operations.” Shares of Perrigo, whose management calls Mylan’s $35 billion offer for the company too low, dropped 4.6% to 716.50 shekels ($184.86). (TheMarker Staff) 

Dankner debt talks with bank in final stretch

Talks between the failed tycoon Nochi Dankner and his banks over his 500 million shekels of personal debt are in the final stretch, sources said yesterday. Dankner, who until 18 months ago controlled the IDB group conglomerate, is expected under the agreement to repay about 70 million shekels to the banks within a year. He is due to repay another 100 million to 120 million within four years. Dankner, who took on the debt when he personally guaranteed money borrowing for his closely held companies Tomahawk, and Ganden Investments, will mostly come from his father Yitzhak and other family members. He is also due to surrender his private home valued at 40 million shekels with three months of singing the agreement.  The bailout agreement won’t speak of writing off debt but the remaining 300 million shekels is supposed to be paid from Dankner’s future earnings. (Michael Rochvarger)

Paz profits more than double

Paz Oil yesterday reported second-quarter profit more than doubled, boosted by a jump in its refining margins. Israel’s largest distributor of refined oil products earned an adjusted 175 million shekels in the April-June period, compared with 80 million a year earlier. Its refining margin was $9.80 per barrel, compared with the Reuters’ quoted Mediterranean Ural Cracking Margin of $4.90 a barrel and up from $7.10 in the second quarter of 2014. “Oil prices are expected to continue to be low, at least until the end of 2016, which contributes to an increase in global economic growth, an increase in fuel consumption, and improvement in refining margins,” said CEO Yona Fogel. But quarterly revenue fell 22% to 3.58 billion shekels. Paz shares dropped 2% to 593.40 shekels. (Reuters)