Business in Brief / Tel Aviv Shares Turn Higher, but Tech Stocks Stumble

Israel Securities Authority rejects Perrigo case against Mylan takeover; Ormat in tie-up with Japan's Toshiba; Negev Ceramics plans layoffs to stem losses.

Bloomberg

Israel Securities Authority rejects Perrigo case against Mylan takeover

Perrigo’s efforts to block a hostile takeover by Mylan were dealt a setback Wednesday when the Israel Securities Authority rejected Perrigo’s contention that Mylan’s acquisition terms violated Israeli law. Mylan is offering Perrigo shareholders a package of cash and shares for their stock. Perrigo, which is seeking to block the offer in Israeli courts, said Mylan could offer shares after it published a prospectus and said the “poison pill” option Mylan’s company charter gives it violates Israeli law on shareholders’ rights. But the securities agency said it didn’t believe Mylan, as a publicly traded company in the United States, is obligated to issue a prospectus, and it rejected Perrigo’s argument on the poison-pill defense. Perrigo will still have its day in court, on October 27, but without the securities agency’s backing. In related news, the Irish Takeover Panel said on Tuesday it had rejected Perrigo’s request to declare Mylan’s unsolicited tender offer lapsed. Perrigo shares fell 2.5% to 610 shekels ($158.61). (Yoram Gabison)

Ormat in tie-up with Japan’s Toshiba

Ormat Technologies said Wednesday it had reached a strategic collaboration pact with Japan’s Toshiba Corporation to offer customers the best of the two companies’ geothermal power generation technology. Geothermal power plants generally use a binary system, a conventional flash system or a combination of both. Under the pact, the two companies will be able to offer Toshiba’s flash systems technology and Ormat’s binary systems,  which they said will enable them to capture a larger share of the geothermal market. The first project expected to be completed under the collaboration is the Menengai Geothermal Project in Kenya. It will be built and operated by a consortium, majority-owned by Ormat. Shares of Ormat Technologies were up 2.8% at $37.08 early afternoon local time in New York. (TheMarker)

Negev Ceramics plans layoffs to stem losses

Negev Ceramics, the Africa Israel Investments unit whose CEO stepped down last spring amid suspicions of financial irregularities and heavy losses, said Wednesday it would be cutting costs sharply to restore profits. “In the current situation, Negev Ceramics must undertake an efficiency program even at the cost of making difficult decisions,” said Omri Lotan, who joined the company as CEO four months ago after a career at Osem Food Industries. Negev Ceramics lost 53 million shekels ($13.8 million) in the first half of the year, forcing its parent company Africa Industries to lend it 50 million shekels. The cutbacks include closing five unprofitable retail outlets, axing 80 to 90 employees out of 950 and merging departments in a restructuring. Auditors discovered earlier this year that the company filed faulty financial reports for 2011-14. Its CEO from that period, Avi Motola, is being investigated by the Israel Securities Authority. Africa Industries shares were unchanged at 209 shekels. (Eran Azran)

Tel Aviv shares turn higher, but tech stocks stumble

Tel Aviv shares turned higher Wednesday as the wave of terror attacks diminished. Bond prices rose sharply, with the government’s 10-year shekel bond climbing 0.65% to lower its yield to 2.11%, while the shekel strengthened against the dollar 0.4% to 3.85 shekels. The benchmark TA-25 index ended 0.9% up at 1,510.37 points while the TA-100 rose 0.4% to 1,316.46. Trading remained light, with 937 million shekels ($244 million) in shares changing hands. “The events of the last few days haven’t affected the market much. The assumption is this will be a short-term problem,” said Ronen Matmon, chief of investments at Excellence Gemel. Gains were led by Bezeq, which rallied 5.5% to a close of 7.65 shekels, and Israel Chemicals, which added 6.3% to 21.49. Technology shares, however, were lower, with Gilat Satellite sinking 4.3% to 13.76 even though it vowed Tuesday to return to profitability by next year. (Eran Azran)