Business in Brief: Teva Mulls Moving Forward $22-billion Bond Sale Due to Brexit

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Trucks drive in front of Teva Pharmaceutical Logistic Center in the town of Shoam, Israel.
Trucks drive in front of Teva Pharmaceutical Logistic Center in the town of Shoam, Israel.Credit: AP

Teva mulls moving forward $22-billion bond sale due to Brexit

Teva Pharmaceutical Industries is weighing moving forward a plan to raise $22 billion in the bond market in order to take advantage of the drop in U.S. government interest rates in the wake of the Brexit vote, sources told TheMarker. The drugmaker had planned to raise the money, which will be used to help finance its $40.5-billion acquisition of Allergan’s generic-drugs business, in September or even as late as the fourth quarter. But Teva began reconsidering the schedule after the yield on 10-year U.S. treasuries fell to a near-record low of 1.4%. Investors have moved into the world’s safest and most secure securities out of concerns over the impact of the British referendum to leave the European Union. The interest rate on the Teva bonds is affected by the treasury yield. Shares of Teva, which has won European regulatory approval for the acquisition but is still awaiting U.S. clearance, finished up 0.1% at 195 shekels ($50.22). (Yoram Gabison)

Elbit Systems forms unit to develop civilian energy technology

Defense electronics firm Elbit Systems said yesterday it was forming a company that will be based on energy technology it has developed for civilian transportation. An international strategic investor from the automotive industry, which it declined to name, will invest 16 million euros ($18 million) in return for 20% of the new company’s shares and will grant the new company rights to several of its energy-related technologies. The as-yet-unnamed company will be headquartered in Israel. “I expect this new company will grow substantially and develop more energy solutions for civilian transportation applications,” said Elbit Systems CEO Bezhalel Machlis, who aims to generate 20% of Elbit Systems’ revenues from civilian applications of its military technology. Elbit didn’t say what the technology was but in the past it has reported work on supercapacitor batteries — efficient storage devices that can deliver high power and have a long life span — for electric buses. Elbit Systems shares ended 3.3% higher, at 361.90 shekels ($93.21). (Yoram Gabison)

Insurers left behind as Tel Aviv shares advance sharply

Tel Aviv shares ended sharply higher yesterday, with insurance companies being the only sector to run against the trend. The TA-25 and TA-100 indexes each ended the day up 1.03%, at 1,412.44 and 1228.64 points, respectively. Turnover was 1.15 billion shekels ($300 million). Among the biggest gainers on the TA-100, LivePerson jumped 13.6% to close at 27.63 shekels and Delta Galil added 6.3% to 110 and Israel Chemcials rose 3.7% to 14.97. The biggest gain of all, however, was by the tiny biotech company Micromedic, which soared 137% by closing to 2.26 after it said its CellDetect prostate cancer monitoring kit has yielded good results. Bank Leumi, however, fell another 0.6% to end the day at 12.90 shekels,. marking a drop of 9,.5% over the last 10 trading sessions. Azrieli Group raised 2.19 billion shekels in a bond offering to institutional investors and the general public at an annual interest rate for the bonds of 1.34%. (Uri Tomer)

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