The Ticker: IAC Reportedly Makes $500m Offer for Perion

Kardan NV offers bondholders debt plan; NeuroDerm files for Wall Street IPO; Spacecom signs $75m pact with gov’t; TA-25 stays in record-high territory.

At the entrance to the Tel Aviv Stock Exchange, 2011.
Bloomberg

IAC reportedly makes $500m offer for Perion

The New York-based media and Internet company IAC/Interactive Corp has offered to buy Israel’s Perion Network, the Calcalist financial website reported yesterday. Citing unnamed sources, it said IAC had offered more than $500 million for Perion, whose technology helps developers distribute apps and make money from them through advertising. Perion declined to comment on the report, and the company made no statement to the Tel Aviv Stock Exchange where it trades at a market value of 1.64 billion shekels ($450 million). IAC was not available for an immediate response either. Perion had a strong second-quarter, but lowered its 2014 outlook after Google dented revenue prospects by unexpectedly altering its browser policy. Perion shares closed up 2.4% at 24.25 shekels in Tel Aviv. (Reuters)

Kardan NV offers bondholders debt plan

Kardan NV offered bondholders on yesterday a debt-rescheduling plan that would give them a 10% equity stake in the property company, pushing debt repayments by two years and raise the interest rate on its bonds by 80 basis points. Kardan also offered to use all its assets as collateral on the debt, which amounts to 346 million euros in bonds and 33 million euros in loans from Israel Discount Bank. The plan came in the first round of talks with bondholders, a day after management finally agreed to discuss a bailout. Bondholders are skeptical that Kardan can generate enough cash and sell enough assets, to meet its current repayment schedule. Shares of Kardan dropped 3% to 1.28 shekels (35 cents) in Tel Aviv.
 (Michael Rochvarger)

NeuroDerm files for Wall Street IPO

Just a month after it raised $16 million from private investors, the pharma company NeuroDerm said this week it filed with the U.S. Securities and Exchange Commission for an initial public offering. The number of shares to be offered and the price range have not yet been determined, but sources said the company would seek to raise $65 million. NeuroDerm, which is developing drugs for central nervous system diseases, has applied to list its ordinary shares on the Nasdaq Global Market under the ticker symbol NDRM. Jefferies and Cowen& Company are managing the offering. The company’s flagship product NDO612H for treating Parkinson’s disease is undergoing Phase II clinical trials. Since it was formed 11 years ago, Rehovot-based NeuroDerm has raised $43 million and run up cumulative losses of $108 million. (Yoram Gabison)

Spacecom signs $75m pact with gov’t

Spacecom, the operator of the Amos satellites, signed an agreement with the government on yesterday extending its use of the Amos 2 and 3 satellites for another 10 years. The state will pay $75 million for unspecified satellite communications services, under the agreement, which originally dates back to the year 2000. Earlier in the week, Spacecom reported it had signed an $8.4 million agreement with an unnamed African client for Amos 4 and last week it extended a pact with a European television broader to use Amos 6 for seven years for $5.9 million. Shares of Spacecom fell 1.9% to 49.32 shekels ($13.55) in Tel Aviv. (Erez Azran)

TA-25 stays in record-high territory

The TA-25 index stayed inside record-high territory on yesterday despite more evidence that Israel’s economy is slumping. The benchmark index finished 0.5% higher at 1,439.03 points while the TA-100 added 0.78% to 1,294.49, on turnover of 1.17 billion shekels ($320 million). Amit Rosenzweig, investments manager at Halman Aldubi, said slow growth has forced the Bank of Israel to lower interest rates, prompting investors to look to stocks for better returns. “As long as interest rates stay low and there are no inflationary pressures, money will keep flowing into the share market,” he said. Real estate and insurance stocks led the market higher on Wednesday, with Property & Building ending up 3.6% at 215 shekels. Clal Biotechnology marked its sixth decline in seven sessions, losing 5.1% to 38.62 shekels. (Dror Reich)