Business in Brief / Stormy Day for Tel Aviv Stock Exchange

Analysts chary as Mylan starts Perrigo bid; ISA issues warning on investment fund; Firms win orders from UAE, South Africa.

Bloomberg

Stormy day for Tel Aviv Stock Exchange

The Tel Aviv Stock Exchange’s benchmark TA-25 index barely budged Wednesday, but that belied a day of sharp movements as the market returned from a long Rosh Hashanah holiday weekend.  The TA-25 ended up 0.1% higher at 1,595.26 points, while the TA-100 lost 0.1% to 1,393.43. Turnover was 1.29 billion shekels ($330 million). Volume leader Teva Pharmaceuticals shot up 4.4% to end the day at 251.60 shekels, but technology shares were sharply down. LivePerson tumbled 1.31% to end at 30.80 shekels and Allot Communications was down 7% by close at 19.64. In the fixed-income market, prices were down sharply as short-term U.S. bond yields hit 4 1/2-year highs and investors braced for the possibility of the first interest rate hike in the United States in a decade. The government’s 10-year shekel bond dropped 0.4% to raise its yield to 2.43%, while the Tel Bond-20 index of corporate bonds dropped 0.53%. (Shelly Appelberg)

Analysts chary as Mylan starts Perrigo bid

U.S. drug maker Mylan went ahead with its $27.14 billion bid for Perrigo on Monday, with analysts telling the Financial Times that it stood a good chance of succeeding despite opposition from. Perrigo’s board. Mylan is offering Perrigo shareholders $75 in cash and 2.3 shares of Mylan stock for every Perrigo share they hold. That’s a premium of about 4%, based on Perrigo’s value just before the offer was announced. The board of Perrigo, a U.S. company whose shares trade in Tel Aviv, rejected several offers from Mylan, and said it is confident its shareholders would reject Mylan’s offer. But analysts quoted by the FT said that close to half of Perrigo’s stock is owned either by hedge funds — most of which bought their shares in anticipation of a deal — or large Mylan shareholders, which recently voted in favor of a merger. Mylan wants to combine its prescription generic drug business with Perrigo’s over-the-counter products to create a company with about $15 billion in combined annual revenue.  Shares of Perrig
o closed 1.2% up at 694.10 shekels ($179.49). (TheMarker Staff)

ISA issues warning on investment fund

The Israel Securities Authority issued an unusually strong warning to the public Wednesday regarding the Kela Fund, which has been running a high-profile television advertising campaign to recruit investors. The ISA said the fund, which is managed by Amir Bramly’s Rubicon Group, had not received official authorization and that its managers were being investigated for securities violations and are suspected of defrauding hundreds of investors. “The ISA again warns the public against the risks entailed in making investments that are not regulated,” it said. The fund, which specializes in making loans to medium-sized businesses, has raised capital by issuing bonds carrying interest of 12% annually, considerably higher than what’s available in the corporate fixed-income market. The ISA detained Bramly in March on suspicions hes was misleading investors and was taking their money to fund his own investments or companies be controls. Bramly denied the accusation and was released on 1.7 million shekels ($440,000) bail. Last month, the ISA asked a court to double the bail.  (Eran Azran)

Firms win orders from UAE, South Africa

Two Israeli companies Wednesday reported high-profile contracts with countries that are not especially friendly to Israel. Nice Systems said it won a contract to support the Abu Dhabi-based UAE Exchange, with a portfolio of financial crime solutions, including its Actimize Anti-Money Laundering and Actimize Integrated Fraud Management systems. Shares of Nice Systems finished 1.5% down at 231.50 shekels ($59.86). Meanwhile, Ilex Medical said a subsidiary had won a tender for five-year, $110 million contract from the South African National Blood Service to provide technology for identifying blood-borne viruses. The Ilex system will be introduced early next year, the company said. Shares of Ilex, which said it expected to win other African tenders for the technology, soared 23.3% to close at 33.29 shekels. (Shelly Appelberg)