Dispute Between Bank Hapoalim Controlling Shareholders Raised a Notch

Danker requests arbitration; Arison expected to agree

The battle for a significant stake in the controlling interest of Bank Hapoalim was raised a notch today. Israel Salt Industries, through which the Dankner family owns its shares in the bank, announced that it is attempting to appoint an arbitrator in its dispute with Shari Arison. Arison owns 11.5% out of a of controlling interest of 20%.

Shari Arison and Dan Danker met yesterday in an apparently unsuccessful attempt to resolve the crisis. Now the disagreement appears to be heating up only a day after the sides agreed to scale down the battle and postpone further deliberations until after the Holidays.

According to the ownership agreement between shareholders in the bank, each side may request to appoint an arbitrator whose decision would be binding. Following the request, the parties have 21 days in which to agree on an appointment, or else the court appoints the arbitrator.

Shari Arison is expected to agree with the request to appoint an arbitrator.

A spokesperson for the Arison group responded that "we have nothing to add beyond the announcements and declarations that have already been made - the declarations speak for themselves". The spokesperson was referring to previous statements regarding Shari Arison's overall control of Bank Hapoalim.