Business in Brief: Mobileye Expected to Announce Tie-up With Intel, BMW for Self-driving Cars

Delta Galil to buy three leading fashion lines from VF Corp. for $120 million; Tel Aviv shares drift lower as Brexit recovery fades.

Delta Galil to buy three leading fashion lines from VF Corp. for $120 million

Delta Galil Industries said yesterday it had agreed to buy three contemporary clothing brands  from VF Corp. for $120 million in its biggest acquisition ever. Splendid, Ella Moss and 7 For All Mankind, will boost Delta’s annual sales by $300 million, and be accretive to earnings in  2017, Delta said.  “This transaction reflects our strategic efforts to grow Delta Galil’s branded business and expand our global footprint,” said CEO Isaac Dabah. Delta’s labels include FIX, P.J. Salvage and KN Karen Neuberger. “They further diversify our product offering and distribution channels, while adding significant strength to our structure.” Together the three VF lines had sales of $344 million last year, but they were down 14% from 2014 while earnings before interest, taxes, depreciation and amortization, or Ebitda, plunged 51% to $23 million. Delta Galil shares jumped 13.7% to close at 103.10 shekels ($26.73). (Yoram Gabison)

Mobileye expected to announce tie-up with Intel, BMW for self-driving cars

Mobileye shares rallied in the wake of reports it will announce today an alliance to develop self-driving cars with Intel and German automaker BMW. The companies said they would hold a joint news conference today. Jerusalem-based Mobileye, which has developed some of the world’s most widely used collision-prevention technology, counts BMW among its customers, along with General Motors and Tesla Motors, but jointly developing self-driving technology would mark a major advance for the company. Intel, the world’s biggest chipmaker, has established a presence for its technology in vehicle entertainment and information systems but it lags behind rivals in providing chips to the auto industry. For Mobileye’s technology to work it needs to be in as many vehicles as possible to effectively collect and share data from its onboard cameras with users. Mobileye shares were up 11.9% at $46.90 late morning local time in New York. (Omri Zerachovitz)

More than two-thirds of company directors back executive pay cap, survey finds

More than two-thirds of Israeli company directors surveyed by the accounting firm Fahn Kanne and the law office S. Horowitz support an annual pay ceiling of 2.5 million shekels ($650,000) for executives at publicly traded companies. The poll of 100 directors attending a conference of the Breakfast Club sponsored by the two firms found 68% supported the ceiling. The Knesset imposed a 2.5-million-shekel cap this spring on compensation at financial-service companies, prompting at least two appeals to the High Court of Justice to block it. Lawmakers have said they want to extend it to all listed companies. The poll showed 78% admitted to devoting insufficient time to their companies’ strategic issues and 61% said they do not understand regulations. While 71% said they backed efforts under way to cut red tape for small companies, 61% said the regulatory burden on bigger companies in the Tel Aviv Stock Exchange’s TA-100 index were reasonable. (Shelly Appelberg)

Shares drift lower as Brexit recovery fades

Tel Aviv shares edged down yesterday as the global stock market recovery from the Brexit vote faded. The benchmark TA-25 index ended down 0.1% to 1,397.95 points, while the TA-100 ended virtually unchanged at 1,211.21. Turnover was heavy, at 1.71 billion shekels ($440 million). Energy and biomedical shares led losses. Gas companies Delek Drilling and Ratio both finished 1.6% lower at 13.0 shekels and 30 agorot, respectively. Biomedical declines were paced by Mazor Robotics, which dropped 5% to 34.13, and Mannkind, which ended down 4.15% at 4.32. Phoenix insurance dropped 3.5% to close at 8.79. Telecoms shares, however, rallied after reports that the government was weighing rescinding frequency fees for the companies. Cellcom Israel jumped 4.8% to 25.70, Partner Communications added 2.4% to 17.66 and Bezeq also 2.4% to 7.64. (Omri Zerachovitz)