Business in Brief: Tel Aviv Shares Post Big Gains

Tiv Tam CEO put on leave after dispute with ex-father-in-law boss ■ B Communications sells shares in bid to avoid bailout

Tel Aviv Stock Exchange, August 4, 2016.
Rina Castelnuovo/Bloomberg

B Communications sells shares in bid to avoid bailout

In a bid to avoid a debt bailout, B Communications, Bezeq’s parent company, raised 118 million shekels ($32 million) in a sale of ordinary shares on Sunday. The stock was sold at 16 shekels a share, or about a 20% discount to its opening price on the Tel Aviv Stock Exchange Sunday. Because of the criminal investigation of its former controlling shareholder, Shaul Elovitch, under U.S. law B Com is barred from a public offering. As a result, the company sold the stock to accredited Israeli and institutional investors in a private placement. The company said it may sell more stock to its parent company Internet Gold, if Internet Gold’s creditors approve. B Com, whose single asset is its 26.3% stake in Bezeq, Israel’s biggest telecommunications company, needed to raise the money to help repay 2.9 billion shekels in debt to bondholders. B Com shares finished down 2.4% at 19.70 shekels. (Michael Rochvarger and Shelly Appelberg)

Tiv Tam CEO put on leave after dispute with ex-father-in-law boss

Hagai Shalom, the controlling shareholder of the Tiv Tam supermarket chain, has not only lost a son-in-law, but as of Sunday may lose a CEO as well. The retailer said Adi Cohen, who was married to Shalom’s daughter until they separated two-and-a-half years ago, was put on immediate leave over the weekend after he accused Shalom of interfering in management in a way that violated corporate governance standards. The allegations were made in an email sent to two outside directors, who immediately called a meeting to investigate them and put Cohen on leave in the meantime. Shalom, who is taking over as CEO for now, said Cohen’s leave was not related to family matters and Cohen declined to comment. But sources said that Shalom had grown uncomfortable with Cohen in the CEO’s job since the latter reached a divorce agreement seven months ago. Tiv Tam shares ended down 1.3% at 2.06 shekels (56 cents). (Eran Azran)  

Tel Aviv shares post big gains on higher world bourses

Tel Aviv shares rose strongly on Sunday after global stock markets rallied over the weekend. The benchmark TA-35 index closed up nearly 1.10% to 1,527.13 points, while the TA-125 added nearly 1% to 1,381.77, in relatively brisk trading of 616 million shekels ($167 million). Bank shares posted big gains – Leumi climbed 1.5% to 21.45 shekels. Hapoalim 1.1% to 23.83 and Israel Discount 1.1% to 12.30. Energean advanced 3.6% to 31.42 after Citibank tagged the stock a Buy and set a target price for its London-listed shares of 730 pence ($9.40). LivePerson rose 4.55% to 76.90 and Elbit System gained 1.6% to 454.20. Azrieli Group said on Sunday it raised 1.5 billion shekels in a bond offering to institutional investors. The company sold two new inflation-linked bond series, both -- seven years at 1.77% and 10 years at 2.48%. The stock ended unchanged at 189 shekels. (Michael Rochvarger)