Business in Brief / Mylan to Begin Trading in Tel Aviv Wednesday

Regulator tells Migdal Insurance to rescind giant dividend; Noble Energy posts wider-than-expected loss for the third quarter; Pharma, telecom shares lead Tel Aviv higher.

Bloomberg

Mylan to begin trading in Tel Aviv Wednesday

Shares in the U.S. generic drugmaker Mylan will begin trading on the Tel Aviv Stock Exchange Wednesday, the TASE said Monday. The move comes after Mylan last week won an Israeli court ruling rejecting Perrigo’s attempt to block Mylan from listing on TASE. Mylan is seeking to convince Israeli shareholders of Perrigo, which has traded on the TASE since 2005, to back its hostile bid for the company. With a combined 12% stake in Perrigo, Israeli investors are important target groups as Mylan and Perrigo make their case for accepting or rejecting Mylan’s $25 billion offer before a November 13 deadline. The TASE said Mylan’s opening price would be based on the company’s closing price on the Nasdaq Monday, multiplied by the Bank of Israel shekel-dollar rate for Tuesday. Mylan, whose $22.5 billion market cap will make it the second-biggest stock on the TASE, was trading at $45.37 late morning local time in New York. (TheMarker Staff)

Regulator tells Migdal Insurance to rescind giant dividend

Insurance Commissioner Dorit Salinger has called on Migdal Insurance to rescind last week’s decision to pay a 200-million-shekel ($51.6 million) dividend. “Paying out a dividend at a time of a most significant shortfall, amounting to several billion shekels, could harm [Migdal’s] proper business management and its preparations for the new solvency regime,” she said, setting a deadline of Tuesday for Migdal to respond. The European Union Solvency II standard, which Israel has adopted, specifies the amount of capital insurers must hold to reduce the risk of insolvency and is set to go into effect in January. Analysts said Migdal is about 6 billion shekels short of the requirement, noting that the gap will be narrowed when it raises 2.5 billion shekels in the capital market. Shares of Migdal, which is controlled by insurance magnate Shlomo Eliahu, finished down 1.7% at 3.46 shekels. (Assa Sasson).

Noble Energy posts wider-than-expected loss for the third quarter

Noble Energy, the Texas company that is the operating partner in Israel’s Tamar and Leviathan gas fields, posted a quarterly net loss as a steep decline in oil prices sapped profitability. The company reported a net loss of $283 million, or 67 cents a share, in the third quarter, turning around from a profit of $419 million, or $1.12 per share, a year earlier. Adjusted loss was 21 cents, steeper than the average analyst estimate of 18 cents, according to Thomson Reuters I/B/E/S. Total revenue fell 37% to $801 million, lagging analysts’ estimate of $955.3 million. Noble raised its sales forecast for the current quarter, while cutting its 2015 capital budget by $100 million to $3 billion. The reduction comes as Israel moved forward on Sunday to break an antitrust logjam that had caused Noble and its partners to freeze development of Leviathan. Oil and gas producers are curtailing spending and cutting operating and other costs to weather a nearly 60% drop in crude oil prices since June last year. Noble shares  were 3.6% at $37.14 late morning local time in New York. (Reuters)

Pharma, telecom shares lead Tel Aviv higher

Tel Aviv shares ended higher, with drug and telecom stocks leading the gains. The benchmark TA-25 and the TA-100 indexes both ended about 0.2% higher at 1,577.82 and 1,365.72  points, respectively, on turnover of 1.37 billion shekels ($350 million).  Energy shares surrendered early gains, but Teva Pharmaceuticals ended up 1.1% for the day at 233.40 shekels and Perrigo added 1.2% to 619, both reversing Sunday’s declines. Partner Communications added 4.2% to close at 18.78 and Cellcom Israel rose 4% to 30.69 on heightened prospects for a mobile industry consolidation. Tech company Ceragon plunged 16% to end at 1.74 shekels after missing analysts’ estimates for third-quarter profits Monday. In the fixed-income market, the government’s 10-year bond fell 0.39% to raise its yield to 2.09%. The inflation-indexed 30-year bond declined 1.2% to a yield of 1.49%. (Shelly Appelberg)