The Ticker: Tel Aviv Shares Tumble in Global Sell-down

Elsztain gets control of IDB after arbitrator sets terms for Ben-Moshe buyout, Gilat shares hit after it revises 2015 outlook, and Mylan countersues Perrigo over ‘misleading’ statements.

Yael Engelhart

Tel Aviv shares tumble in global sell-down

Tel Aviv shares tumbled yesterday, as the market caught up with a global stock market slide and reacted badly to the Bank of Israel’s decision to keep its lending rate unchanged (see story on page 16). Trading for the first time since Monday, the TA-25 and TA-100 indices both fell 3.5%, to end at 1,524.08 and 1,332.93 points, respectively. Volume was 2.9 billion shekels ($736 million), lifted by the expiry September index options contracts. Israel Chemicals shares ended down 10.9% at 19.90 shekels after Goldman Sachs cut its rating on the stock to a Sell. Parent company Israel Corporation lost 10% to end at 989.10 shekels. Stocks around the world fell for a fifth day, sliding toward two-year lows amid worries over global growth while the Volkswagen emissions scandal rattled Europe’s carmakers. In Tel Aviv, arbitrage stocks led the falls, with Teva Pharmaceuticals down 4.4% at 238.50, Opko Health down 5.3% at 38.73 and Ormat Technologies off 4% at 137.90. The government’s 10-year shekel bond added 0.5% to reduce its yield to 2.16%, while its inflation-linked Galil bond for the same term was up 0.72% at a yield of 0.73%. (Shelly Appelberg)

Elsztain gets control of IDB after arbitrator sets terms for Ben-Moshe buyout

Eduardo Elsztain, the Argentinian real estate magnate, will become sole controlling shareholder of the IDB group after an arbitrator set terms yesterday for buying out his partner, Moti Ben-Moshe. Amiram Benyamini, a retired judge, said Elsztain should pay 150 million shekels ($38.1 million) for Ben-Moshe’s remaining 14% stake in IDB Development Corporation, the company at the apex of the holding group. The price worked out to 1.64 shekels a share, compared with IDB’s closing price of 2.26 shekels, after the shares closed up 6.3% yesterday. In addition, Benyamini said Elsztain would be required to subscribe to 256 million shekels in shares as part of a rights offering in IDB last February that Ben-Moshe refused to participate in, a move that diluted his stake and left Elsztain as the dominant shareholder. The two took control of IDB group in May 2014 but quickly began disputing over strategy and control. (Michael Rochvarger)

Gilat shares hit after revising 2015 outlook

Shares of Gilat Satellite Networks dived yesterday after the maker of satellite communications gear revised downward its forecast for sales and earnings before interest, taxes, depreciation and amortization this year. “I am disappointed that we will not meet our management objectives for 2015,” said CEO Dov Baharav, which he ascribed to delays in several large-scale projects by customers mainly in Mexico and Russia, and in defense-related activities. Gilat said second-half revenues will be between $120 million and $130 million, and EBITDA to reach between $8 million and $10 million. As a result, full-year revenues will be between $210 million and $220 million, and EBITDA between $6 million to $8 million. Gilat shares ended down 12.8% at 13.50 shekels ($3.43). (Yoram Gabison)

Mylan countersues Perrigo over ‘misleading’ statements

Mylan countersued Perrigo Company on Tuesday over “serious misstatements” it made related to the generic and over-the-counter drugmaker’s unsolicited $27 billion tender offer. In a filing in Manhattan federal court, Mylan sought a court order requiring Perrigo to correct “false and misleading statements” it made as part of an effort to prevent any merger. The counterclaims were in a lawsuit that Perrigo filed last Thursday, which sought an injunction to block the closing of any tender offer unless Mylan corrected its alleged misleading statements to Perrigo shareholders about a potential merger. Perrigo, a U.S. maker of generic drugs traded on the Tel Aviv Stock Exchange, has spurned Mylan’s $27.1 billion cash-and-stock offer. Perrigo CEO Joseph Papa has cast doubt on Mylan’s leadership, but last week it was revealed that he himself acquired $221,568-worth of Mylan shares last March. Papa declined to comment. Shares of Perrigo finished 5.2% lower, at 662 shekels ($167.98). (TheMarker)