TASE Indexes Mixed in Tuesday Trading

Business in brief | Teva announces settlement with Alder BioPharm over migraine medication ■ Mellanoxs scrapping of silicon photonics product to result in pink slips for 100 workers ■ Matomy CEO Sagi Niri resigns unexpectedly for a once in a lifetime opportunity

A large digital ticker shows financial information to pedestrians outside the entrance to the Tel Aviv Stock Exchange (TASE) in Tel Aviv, Israel, on Thursday, Aug. 4, 2016.
Rina Castelnuovo, Bloomberg

Gazit-Globe CEO to be replaced by its chairman, Chaim Katzman

Real estate developer Gazit-Globe said on Tuesday that Dori Segal is stepping down as the firms chief executive on January 31 and will be replaced by company chairman Chaim Katzman, who has served as chairman of the companys board since 1995 as well as chairman of subsidiaries Atrium European Real Estate and Citycon. He is also chairman and CEO of Norstar Holdings, controlling shareholder of Gazit-Globe. Katzman will step down as chairman of Gazit-Globe and Norstar prior to becoming CEO and will thereafter serve as vice chairman at both the company and Norstar. Segal was CEO of Gazit-Globe between 1998 and 2008 and again from 2017. He will also leave his position of vice chairman but remain a board member of the company and chairman of Canadas First Capital Realty. In another development, Gazit-Globe said it plans to increase its dividend payment to 1.52 shekels (44 cents) per share this year from 1.40 shekels last year. (Reuters)

Mellanoxs scrapping of silicon photonics product to result in pink slips for 100 workers

A day after Mellanox Technologies largest shareholder Starboard Value LP complained that the Yokneam-based companys 2018 growth targets were insufficient and too reliant on revenue increases, Mellanox announced on Tuesday that it would immediately halt development of its 1550nm silicon photonics product resulting in the layoff of about 100 people. The end-to-end Ethernet interconnect technology firm said the step was not expected to have an impact on its fiscal revenues in 2018 but would result in a savings of $26 million to $28 million in operating expenses. It would also result in a charge of $21 million to $24 million, mostly related to severance expenses as well as $17 million to $19 million in non-cash items, Mellanox said. In its criticism on Monday, Starboard slammed the companys growth targets, saying that they were merely reactionary and would not come close to addressing the companys problems. (Omri Zerachovitz)

Matomy CEO Sagi Niri resigns unexpectedly for a once in a lifetime opportunity

Shareholders of the Matomy Media Group, the digital advertising company, were informed in a surprise announcement on Tuesday that the companys CEO, Sagi Niri, was leaving the company after just nine months at its helm, to be succeeded immediately by Liam Galin, the president and CEO of Flash Networks. Speaking to TheMarker, Niri said: I received an offer that cannot be refused from a huge company in London. He refused to divulge the firms name, but he called it a once in a lifetime opportunity. A source told TheMarker said Niri would be working for Israeli gaming mogul Teddy Sagis London real estate firm in a financial capacity. Apparently he understood that his time was short, the source said. Another source claimed that there has apparently been dissatisfaction with Niri. Immediately after taking the helm at Matomy, Niri laid off 150 staff people. The company continued to disappoint investors, who over the past 12 months saw a negative 44% return. Matomy shares, which are also listed in London, closed up 0.29 % at 3.41 shekels (99 cents) in Tel Aviv Tuesday. (Shelly Appelberg)

Teva announces settlement with Alder BioPharm over migraine medication

Teva Pharmaceutical Industry announced on Monday that it signed a global licensing agreement with the Alder BioPharmaceuticals of the United States and an agreement resolving Alders patent dispute with Teva in Europe regarding the use of calcitonin gene-related peptide (CGRP) antibodies for the treatment of migraine headaches. Alder was given a non-exclusive license to Tevas patents involving CGRP antibodies, which with enable the U.S. firm to develop a migraine medication using the formulation, known as eptinezumab and to market it around the world, with the exception of Japan and South Korea. In return Adler agreed to withdraw its European patent appeal on the matter and to make a $25 million payment to Teva in addition to other sums based on milestones to which the parties agreed. (Omri Zerachovitz)

TASE indexes mixed in Tuesday trading

Tuesday was a mixed trading day on the Tel Aviv Stock Exchange, although most indexes sank into negative territory. The benchmark Tel Aviv 35 index lost 0.08%, closing at 1,528.91 points, but by contrast, the Tel Aviv 125 index gained 0.11%, ending the day at 1,392.62. Trading volume was 1.359 billion shekels ($395 million). The Banks 5 index lost 0.97%. The Oil and Gas index was off 1.28% and the Real Estate 15 edged down 0.33%. The Biomed index, by contrast, jumped 1.65% to 400.76 points. Among shares of interest, Bank Hapoalim shares generated the highest trading volume on the day -- 52.7 million shekels -- and lost 1.09%, closing at 25.38 shekels. But a real standout was Kenon Holdings, which gained 27.32% on the day, soaring to 97.90 on news that Chinas Baoneng group has acquired 51% of its Qoros Automobile joint venture after the deal obtained approval from Chinas Ministry of Commerce. (Shelly Appelberg)