Tel Aviv stocks gain as Chinese market rallies
Tel Aviv shares ended higher on Thursday as the Chinese stock market rebounded and investors saw a glimmer of hope emerging from the Greek crisis. After two days of declines, the benchmark TA-25 index ended 1% higher at 1,658.06 points, while the TA-100 gained 0.9%$ to 1,425.63, on turnover of 1.14 billion shekels ($300 million). Gains were led by Israel Chemicals, which advanced 1.5% to a close of 25.49 shekels. Africa Israel Investments jumped 8% to 3.11 shekels and Frutarom added 3.5% to 115.40. But tech stocks Allot Communications and Silicom both extended the step losses they have been suffering since issuing profit warnings earlier this week, Allot ended down 2.3% at 20.79 shekels and Silicom lost 2% to 100.10. In the fixed-income market, the government’s 10-year shekel bond was down 0.18% by close, raising its yield to 2.45%. Its Galil bond due in September 2023 lost 0.23% to leave its yield at 0.49%.
Cellcom, Pelephone cleared for joint antennas
Israel’s Antitrust Authority on Thursday approved a plan by the two mobile providers Cellcom Israel and Bezeq’s Pelephone unit that will allow them to build and operate shared cellular antennas. Antitrust Commission David Gilo said the sharing could cover all so-called “passive” activities like land, fencing, the antenna itself as well as power and cooling systems but said the two companies would have to maintain separate transmitting operations for their mobile networks. Still, the 10-year antitrust waiver promises to yield big savings for the two companies, which are feeling the pinch of competition since the cellphone market was open to new competition three years ago. It also will save them the regulatory obstacles of building new antennas, which can take 10 years. The waiver allows Israel’s other mobile companies to form the same tie-up. Cellcom shares advanced 0.4% to close at 13.96 shekels ($3.69).
Analysts: Teva might do better without Mylan
Teva Pharmaceuticals might be better off strategically not taking over Mylan, The Wall Street Journal said, quoting two analysts who follow Teva. Leerink analyst Jason Gerberry said that it would be “favorable for Teva” if it can buy Mylan for under $95 a share, which gives the company a lot of upside on its current $82 offer, but Gerberry said Teva could use its capital in other equally useful ways. Meanwhile, Bernstein analyst Ronny Gal expressed concern about the time management would have to invest in pursuing the U.S. drug maker. Mylan this week noted that Teva would face major hurdles trying to take over Mylan’s board because under Mylan’s bylaws a two-thirds majority of shareholders are needed to remove directors and even then Mylan’s chairman, who opposes the Teva takeover bid, appoints their replacements. Teva shares ended 0.8% higher at 234.30 shekels ($61.86).
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