Business in Brief: El Al’s Offices Raided in Insider Trading Probe

Elbit Systems wins $167m Asia-Pacific deal ■ TASE drops on Lieberman resignation news ■ El Al’s offices raided in insider trading probe

An EL AL Boeing 777 aircraft is seen at Ben Gurion International Airport near Tel Aviv July 14, 2015.
REUTERS/Nir Elias/File Photo

El Al’s offices raided in insider trading probe

Israel Securities Authority investigators raided El Al’s offices on Wednesday evening as part of an investigation into insider trading, and questioned senior employees. Other senior employees have been called in for questioning at the ISA offices on Thursday. The company’s share price gained 7.7% on Wednesday, before news of the investigation broke. El Al’s share price has been benefiting from the sharp 15% drop in fuel prices since October. The company has said that every one-cent difference in fuel prices works out to $2.6 million a year for the company’s expenses, which would mean that the current price change will save El Al $91 million a year. The company’s share jumped 8.5% on October 15 on an unusual turnover of 12 million shekels, after the company confirmed to the media that negotiations on a new labor agreement with its pilots had advanced. 
(Yoram Gabison and Gur Meggido)

Elbit Systems wins $167m Asia-Pacific deal

Defense electronics firm Elbit Systems said on Wednesday it won a $167 million contract from an Asia-Pacific country to supply an aerial intelligence, surveillance, target acquisition and reconnaissance system. The contract will be carried out over 20 months. Elbit did not name the country. Elbit CEO Bezhalel Machlis, said the company was seeing growing demand for the unmanned aerial intelligence systems it offers as customers seek wider capabilities. (Reuters)

TASE drops on Lieberman resignation news

The Tel Aviv Stock Exchange finished the trading day with losses, against the background of Defense Minister Avigdor Lieberman’s resignation. The blue-chip Tel Aviv-35 Index lost 0.7% to close at 1,636 points, while the broader Tel Aviv-125 Index lost 0.65% to close at 1,474 points. Total turnover was 1.39 billion shekels. (Shelly Appelberg)