Business in Brief: Teva Q1 Profit Falls Less Than Expected

IDB told to sell Clal shares | FIBI asks stockbrokers to waive need to disclose fees | TASE creeps up

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Trucks drive in front of Teva Pharmaceutical Logistic Center in the town of Shoam, Israel.
Trucks drive in front of Teva Pharmaceutical Logistic Center in the town of Shoam, Israel.Credit: AP

Teva Q1 profit falls less than expected

Teva Pharmaceutical Industries reported a smaller than expected decline in first-quarter profit as sales of generic drugs fell 17% while revenue from its top drug Copaxone rose. Teva, which is in the process of buying Allergan’s Actavis generic business for $40.5 billion, said Monday it earned $1.20 per share excluding one-time items, down from $1.36 a year earlier. Excluding equity offerings on Dec. 15 to finance the Actavis deal, EPS in the quarter was $1.36. Revenue slipped 3% to $4.81 billion, although excluding foreign exchange fluctuations, revenue fell 1%. Teva, the world’s biggest generic drugmaker, was forecast to earn $1.17 excluding one-off items on revenue of $4.77 billion, according to Thomson Reuters I/B/E/S. (Reuters)

IDB told to sell Clal shares

Capital Market and Insurance Commissioner Dorit Salinger has sent IDB Development a letter stating that she ordered trustee Moshe Tery to start selling off 5% of Clal Insurance shares held by that company. Tery has four months to carry out the sale, said Finance Ministry sources. The Finance Ministry received several suggestions as to how the shares should be sold, but it has not received a proposal that would enable IDB to continue holding a controlling interest in Clal, Salinger stated. This comes after IDB Development’s current controlling shareholder, Eduardo Elzstain, was given repeated grace periods to sell off the shares. Elztain has been ordered to sell his 55% in Clal Insurance after IDB lost its license to control the insurance company due to the holding company’s heavy debt load. (Shelly Appelberg)

FIBI asks stockbrokers to waive need to disclose fees

The First International Bank of Israel has sent a letter to stockbrokers who manage their customer accounts through the bank, stating that customers must sign a form permitting the bank not to disclose the fees they are paying for capital market transactions, TheMarker has learned. If they don’t, the bank will close their accounts. This means that customers whose investments are managed at the bank will be signing away the right to know how much they’re paying in capital market transaction fees, including on selling and buying shares, mutual funds and options, and holding fees for stocks and deposits. This has particular significance for account managers because they often negotiate discounted fees on behalf of their customers. The bank stated in response that there would be no changes in customers’ fees or discounts, and that customers would continue to be treated with transparency and receive periodic statements detailing fees, and that the form relates only to the immediate term, when transactions are carried out. (Asa Sasson and Michael Rochvarger)

TASE creeps up

The Tel Aviv Stock Exchange finished Monday’s trading session mixed with a positive bias, as the blue-chip Tel Aviv-25 Index closed up 0.3%, at 1,410 points, while the broader Tel Aviv-100 Index gained 0.35% to close at 1,220 points. The Real Estate-15 gained 0.6%, while oil and gas shares were up 2%. Bank shares closed down 0.4%, while insurance shares were off 2.5%, led downward by Clal Insurance, on the news that Insurance Commissioner Dorit Salinger had ordered IDB to sell off 5% of Clal’s shares within four months. Other notable shares included pharmaceutical company Teva, whose share gained 3.5% after the company released strong financial reports. The dollar weakened 0.23% against the shekel to close at 3.779 shekels. (Ruti Levy)

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