Business in Brief

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Court approves lawsuit against IDB Development over dividends

Tel Aviv District Court Judge Ruth Ronen approved an investors' class-action lawsuit yesterday against the Nochi Dankner-controlled conglomerate IDB Development Corporation. The suit alleges the conglomerate distributed dividends unlawfully to its parent company IDB Holding Corporation. The lawsuit named all of IDB Development's board members as defendants for approving the NIS 64 million in dividends in 2011 without receiving court approval beforehand. The IDB group responded that the directors of IDB Development had acted lawfully and that it would appeal the court's decision. (Shelly Appelberg)

Ashdod Port lost NIS 50m to labor actions

Ashdod Port has lost business for 50,000 cargo containers and more than NIS 50 million over the last year due to manpower shortages and labor disruptions, port management said in a letter to dockworkers on Wednesday. Management blamed the loss partly on delays caused by the union in hiring 50 to 100 new stevedores at the port, and in opening training courses as well as instructing dockworkers not to accept overtime shifts. Port management has been trying to convince unions to respect two court orders for them to return to a normal work schedule. In a bid to convince workers that the union was leading them astray, management noted that Haifa Port workers were not showing any "solidarity" with their colleagues at Ashdod Port, and that their union had allowed Haifa Port to take some NIS 1 million worth of business from Ashdod. (Daniel Schmil)

Migdal Insurance CEO announces resignation

Yonel Cohen said yesterday he would be stepping down as CEO of Migdal Insurance & Financial Holdings after five years in the job. Sources said Ofer Eliyahu, son of the insurer's chairman and controlling shareholder Shlomo Eliyahu, would likely replace Cohen. Ofer Eliyahu is now chairman of Migdal's general insurance division. Cohen's announcement comes three months after the group's chairman, Aharon Fogel, along with several other senior executives at the company, tendered their resignations. Cohen did not say what his next step would be, except that he was looking for new challenges and that he would leave after ensuring an orderly leadership transition. Said Shlomo Eliyahu: I was surprised by the announcement, especially because of the good chemistry we have had in our work together. (Assa Sasson)

Containers at Ashdod Port. The ports were among the most profitable government companies in 2013.Credit: Tomer Appelbaum