Protective gear stock falls on stabbing fiasco
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A Channel 1 journalist was accidentally stabbed in the neck while trying out a protective neck guard manufactured by FMS Enterprises Migun – and the gear’s failure sent the company’s stock down 5%. The neck guards are to be used by Israel Defense Forces soldiers. FMS, which manufactures protective gear for the defense establishment and the civilian market, stated in response, “The writer moved during the demonstration and the assailant missed the protective gear.” The company’s stock had started the day with a 3% gain on the news that it would be selling the neck guards to the IDF. Journalist Eitam Lahover had been filming a story for the news magazine program Mabat. He was hospitalized with minor injuries after the incident yesterday morning. (Ruti Levy)
CEO’s son, age 22, is company’s new director
In a milestone of sorts for Israeli corporate governance, the 22-year-old son of one of the controlling shareholders in real estate company Aviv Arlon Ltd. was voted in as a board member last week. Arad Lev-Ari has a high school diploma but is due to start studies at Columbia University in the United States, the company explained to shareholders. Lev-Ari has no employment experience, and was most recently a soldier in the Israel Defense Forces. His father, Eyal Lev-Ari, is one of the company’s co-CEOs. Aviv Arlon has a market cap of 100 million shekels and has real estate interests in the United States and Serbia; the public holding in the company is 22% of shares. (Eran Azran)
Nasdaq, TASE to form market for startups ...
Nasdaq and the Tel Aviv Stock Exchange (TASE) confirmed yesterday they would create a private market to support small growth companies in Israel. Many Israeli startups opt to be sold rather than go public due to a lack of funding as they seek to boost sales. The proposed new platform is a marketplace where such firms can find institutional investors and will offer strategic advice and mentoring, networking, a secondary market for increasing liquidity and debt financing services, the exchanges said in a joint statement. The private market, which will operate out of Tel Aviv, will have an independent management team chosen by both exchanges. (Reuters)
But TASE union isn’t cooperating
Meanwhile, employees at the Tel Aviv Stock Exchange are refusing to work with the new trade platform purchased from Nasdaq, due to concerns it could lead to layoffs. The TASE union sent employees an email stating they were forbidden from using the system, and sources told TheMarker that Nasdaq representatives who came to Israel to help launch the new platform did not receive employees’ cooperation. Deputy CEO Gal Landau Ya’ari said two emails had been sent out yesterday morning stating that employees would not be replaced. This is the first time that Nasdaq has agreed to work in partnership, he said, adding that generally the company offers support remotely. He noted that the employees were in the middle of a labor dispute, and were thus entitled to strike. One capital market source pointed out that the average salary cost at the TASE is 50,000 shekels a month, with automatic raises of 5.6% a year and a 7.5-hour workday.
IDB, Clal lead stock market down
The Tel Aviv Stock Exchange closed yesterday’s trading session with losses. The blue-chip Tel Aviv-25 Index lost 0.5% to close at 1,523 points, while the broader Tel Aviv-100 Index lost 0.7% to close at 1,311 points. Bank shares lost 1.3%, while the index of insurance shares closed down 3.4%. Total turnover was 1.86 billion shekels. IDB Development lost 8.5% after the news broke that subsidiary Clal Insurance would be sold off on the Tel Aviv Stock Exchange instead of to Chinese company Microilink. Clal lost 9.1%. (Shelly Appelberg)