Somoto Plummets After Apple Severs Ties

Kenon Holdings leads Tel Aviv shares lower; Leumi lawsuit to proceed without delay.

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Bank Leumi has set aside a provision to settle a U.S. tax probe related to its Swiss unit.
Bank Leumi has set aside a provision to settle a U.S. tax probe related to its Swiss unit.Credit: Bloomberg

Somoto plummets after Apple severs ties

Somoto shares plunged as much as 13% on Thursday before trading was suspended after it said Apple cancelled a digital signature agreement it had with Somoto’s Genieo Solutions unit. Sol Tsvi, CEO of Geneio, said the “automatic” notice she received from Apple offered no explanation for the move and that Genieo had been given no advanced warning. “The company plans to ask Apple immediately to reverse the decision and/or examine the implications of the decision, including its business impact,” said Somoto, which earlier this week had raised its forecast for 2014 revenues by 17% to as much as $25.5 million. Genieo, which Somoto bought last July for $34 million, offers Mac PC users a download that creates a newspaper-style homepage with customized content. In the end Somoto shares closed down just 1.5% to 3.10 shekels (80 cents). (Dror Reich)

Leumi lawsuit to proceed without delay

Bank Leumi can’t delay in responding to a lawsuit filed by shareholders in connection with its $400 million settlement with U.S. tax authorities, Tel Aviv District Court Judge Khaled Kabub ordered on Thursday. The bank has sought to delay the suit by three months until Attorney General Yehuda Weinstein completes an examination of the civil and legal implications of the settlement and whether Leumi violated Israeli law. Other regulators are also looking into the settlement. “On the face of it, it doesn’t appear there is any room for delaying hearings on the suit until the examination is completed by all the various bodies. We are not convinced that these examinations touch on the legal aspects on which the petition was filed,” Kabub said. Leumi shares closed unchanged at 13.38 shekels ($3.43). (Sivan Aizescu)

Elbit wins $117 million in orders

Elbit Systems said on Thursday it won contracts worth $117 million from Israel’s Defense Ministry for the supply of command, control, computer, communications and intelligence systems. Most of the agreements will be carried out over six years. Under the contracts, Israel-based Elbit said it will develop the next generation of the digital army project, a master program to computerize all operations in the land forces, connecting all field and command echelons into a central data network. The company will also develop communications systems and wide band radio systems. The order came a day after Elbit’s won a $54 million contract for advanced electro-optics systems. Elbit shares edged up 0.8% to finish at 247 shekels ($63.36). (Reuters)

Summit German unit raises 120 million euros

Summit Holdings, the property holding company, will join the Tel Aviv Stock Exchange’s TA-100 index after its German unit on Thursday raised 120 million euros ($139 million) in a sale of shares in London. Summit Germany, which began trading on the London Stock Exchange’s AIM market last February after a 166 million-euro initial public offering, sold the shares to a group of institutional investors for 70 cents each, about 4% under the market price. Summit Germany said the proceeds would be deployed to finance property acquisitions, joint ventures and co-investments. Shares of Summit Holdings, whose stake in the unit falls to 50% following the latest share sale, rose 4% to 226.40 shekels ($58.08). (Omri Zerachovitz)

Kenon Holdings leads Tel Aviv shares lower

The Tel Aviv Stock Exchange ended lower on Thursday, with high-flier Kenon Holdings tumbling. The holding company, which soared on the first half of the week in its TASE debut, closed 10.7% down at 67 shekels on Thursday, its third straight decline. An early afternoon move higher by the TA-25 index succumbed to a lower opening on Wall Street , leaving benchmark down 0.14% at 1,463.33 points for the day. The TA-1200 lost close to 0.2% to 1,282.01, with turnover of 1.46 billion shekels ($370 million). Other big decliners were LivePerson, down 9.9% at 44.26, and Perion Network, down 4.4% 12.70. Bezeq was off 1.5% to end at 66 shekels and Bank Hapoalim finished down 1.7% at 17.90. (TheMarker Staff



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