Business in Brief: Exxon Buys Into Israeli-owned Oil License in Guiana

Elbit reportedly in talks to buy Brazilian firm | Teva meets huge demands as it completes $20 billion bond offering | Shares end mixed in dull Sunday trading

The logo of Exxon Mobil Corporation is shown on a monitor above the floor of the New York Stock Exchange in New York, December 30, 2015.
Lucas Jackson, Reuters

Exxon buys into Israeli-owned oil license in Guiana

Just a week after announcing plans to launch an overseas energy-exploration company, Ratio said on Sunday half of the rights in a Guiana license that will be controlled by the new company it is forming were sold the U.S. energy giant Exxon Mobil. The Rotlevy and Landau families, who control Ratio, transferred half their 50% stake in the Block B license to Esso Exploration & Production Guyana. Block B is one of the foreign energy-exploration assets the families plan to turn over to the newly formed company called Ratio Overseas, which will hold rights to explore for oil in Malta, Ireland and the Philippines as well as Guiana and list its shares on the Tel Aviv Stock Exchange. Exxon Mobil will now become the operating partner for the license. In April, Exxon Mobil reported finding up to 1.4 million barrels of oil at a license adjacent to Block B known as Stabroek. Ratio shares gained 0.5% to end at 33 agorot (9 cents). (Eran Azran)

Elbit reportedly in talks to buy Brazilian firm

Defense electronics maker Elbit Systems is close to buying some businesses from Brazil’s Odebrecht Defesa e Tecnologia for about $50 million, Bloomberg News reported over the weekend. The businesses belong to Odebrecht’s Mectron unit, which develops and manufactures high-tech products and systems for military and civilian uses. The unit has seen revenue drop after the Brazilian government cut spending on its nuclear-submarine program by half. Meanwhile, Elbit, which generated about 11% of its revenue from Latin America last year, has been winning more contracts in Brazil as the government shifts its focus away from conventional defense to homeland security, particularly in the Amazon and oil-rich offshore regions. Elbit’s Brazilian subsidiary declined to comment, but Odebrecht confirmed to Bloomberg that the company is in negotiations with several companies involving its Mectron unit. Shares of Elbit climbed 1.1% to finish at 372.80 shekels ($96.99). (TheMarker Staff)

Teva meets huge demands as it completes $20 billion bond offering

Teva Pharmaceuticals raised more than $20 billion in three currencies last week amid huge investor demand to help cover the cost of its $40.5 billion acquisition of Allergan’s generic-drugs business. “To say that allocations for Teva bonds were cutthroat is an understatement,” one syndicate banker away from the deal said. “Guys [who didn’t get allocations] are probably fishing around for extra bonds. It’s a bit of a bloodbath, to be honest.” Things kicked off on Monday in U.S. dollars with a $15 billion sale that met orders of around $70 billion. It was a similar story for Teva’s foray into the euro market on Wednesday, when it sold 4 billion euros ($4.4 billion) of bonds split into 2020, 2024 and 2028 tranches. Teva quickly mopped up the remainder of its acquisition funding on Thursday in Switzerland, where it issued a 1 billion Swiss franc ($1.02 billion) offering. Teva shares ended down 1.2% at 210.10 shekels ($54.66). (Reuters)

Shares end mixed in dull Sunday trading

Tel Aviv shares ended Sunday mixed in dull trading. The benchmark TA-25 index edged 0.07% higher to 1,486.66 points, while the TA-100 slipped 0.09% to 1,277.23, on turnover of 510 million shekels ($132.7 million). Perrigo was the volume leader for the day and also the biggest loser on the TA-100, falling 2.5% to 354.90 shekels even as its share price was raised to Buy from Hold by Deutschebank. Communications shares were mostly higher, led by a 1.7% gain for Bezeq to 7.75 shekels while Spacecom led TA-100 gainers on 4.7% advance to 36.75. Among other big gainers, SodaStream rose 1.7% to end at 91.55 shekels and Ormat technologies advanced 2.05% to 174.50. In the fixed-income market, the government’s 10-year Shahar bond rose 0.27% to lowers its yield to 1.67%, while the Galil for the same term gained 0.22% to a yield of 0.16%. The dollar weakened 0.5% to a Bank of Israel rate of 3.8390 on Friday. (Omri Zerachovitz)