Business in Brief

New Teva CEO to earn base pay of $1.35m; Partners resume work on Strauss Coffee IPO; Tel Aviv shares end lower in light trading.

New Teva CEO to earn base pay of $1.35m

Erez Vigodman, due to take over as Teva Pharmaceutical Industries’ CEO next month, will get a base salary of $1.35 million, the company said over the weekend. Not only is that 10% less than his predecessor, Jeremy Levin, earned, but Vigodman won’t be entitled to the same $1 million signing bonus. And he won’t get the $190,000-plus salary that others serving on the board of directors receive. But Vigodman will receive bonuses for reaching performance targets that could add as much as $2.75 million to his salary, the company said. (Yoram Gabison)

Partners resume work on Strauss Coffee IPO

Strauss Group and U.S. private equity fund TPG Capital have resumed work on plans to take their joint-venture coffee company public three weeks after a Dutch court ruled in Strauss Group’s favor in a dispute between the two. The two firms have agreed on a July date for the initial public offering in New York but have been at odds over how much to value Strauss Coffee, in which Strauss Group holds a 74.9% stake and TPG the rest. Sources at TPG say Strauss Coffee can be sold at a $2 billion valuation, but Strauss Group is concerned that too high a valuation will send the share lower in trading and undermine confidence in the company. A final proposal for the valuation will be prepared by underwriters Barclays, Citi and Goldman Sachs. Strauss closed 1.2% higher on the Tel Aviv Stock Exchange on Sunday. (Yoram Gabison)

Tel Aviv shares end lower in light trading

The Tel Aviv Stock Exchange fell Sunday in light trading of 689 million shekels ($197 million). The benchmark TA-25 index eased 0.5% to 1,342.09 points, while the broader TA-100 declined 0.6% to 1,237.05. Among the biggest losers was Allot Communications, which plunged 8.6% after rallying the week before on a U.S. court decision ending the government’s policy of “net neutrality.” Other dual-listed tech stocks fell after the Standard & Poor’s 500 and Nasdaq indexes declined Friday as results from Intel and General Electric dampened the view on fourth-quarter earnings. EZchip lost 2.7% and Protalix shed 2.9% as the TA-Technology index lost 0.9% to 361.78. Israel Chemicals was the most active, though just 40.3 million shekels changed hands, on a decline of 1.1%. Among the biggest gainers in the TA-100 were Protalix, which climbed 3.6%, and Clal Biotechnologies, which added 1.7%. (Dror Reich)

Erez Vigodman
Ofer Vaknin