The Ticker: Hauser Vows Legislation in 2016 to Deal With Capital Market Ills

Discount shareholders reject slimmed-down pay package for new CEO; Delta in tie-up with Columbia Sportswear.

Moti Milrod

Hauser vows legislation in 2016 to deal with capital market ills

Shmuel Hauser, the chairman of the Israel Securities Authority, promised on Monday that next year would be a turning point for creating securities regulations that would restore life to a moribund equities market. “The time has come to stop complaining about excess regulation, the absence of public offerings, the shrinking number of companies listed on the stock market and low trading volumes,” he told an ISA conference. “The capital market will be healthy and perform well, the public should have confidence in it and be ready to invest in it, not in spite of regulation but thanks to regulation.” He said the ISA hoped to complete legislation in 2016 on crowd funding and an Israeli version of the U.S. Jobs Act, which eased the way for initial public offerings by small and medium-sized high-tech companies. Hauser said the aim was to lure tech companies that have preferred overseas stock markets to trade on the Tel Aviv Stock Exchange. (Shelly Appelberg)

Discount shareholders reject slimmed-down pay package for new CEO

Shareholders of Discount Investment Corporation on Monday rejected a slimmed-down pay package for the holding company’s incoming CEO, Gil Sharon. At a general shareholders meeting, the minority shareholders entitled to vote rejected the package of salary and shares worth some 59 million shekels ($15.2 million) over five years by a vote of 70.3% against to 29.7% in favor. The package, which Sharon, a former CEO of Pelephone, had negotiated with Discount’s controlling shareholder Argentinian Eduardo Elsztain, had already been reduced by 12 million shekels earlier this month in face of minority-shareholder objections. The revised packaged Sharon was supposed to get consisted mainly of 42.5 million shekels in shares he would have received from the company from its two main subsidiaries, Cellcom Israel and Supersol. But many shareholders objected to Sharon’s getting shares in the two subsidiaries. Shares of Discount jumped 7.2% to close 6.98 shekels. (Shelly Appelberg and Michael Rochvarger) 

Delta in tie-up with Columbia Sportswear

Apparel maker Delta Galil said Monday it signed a global licensing agreement to develop, produce and distribute so-called performance-based underwear collections for America’s Columbia Sportswear. Under the agreement, which is in effect through 2018, Delta Galil will produce a range of Columbia Sportswear products including a full collection of women’s sports bras and underwear, as well as men’s underwear. The collections will be available for Fall 2016 at Columbia retail stores, outdoor specialty stores, sport specialty stores and better department stores worldwide. “This represents an important growth opportunity for our business, as activewear remains a strong contributor to our overall sales,” said Isaac Dabah, CEO of Delta Galil. Performance underwear products are engineered with specialized features, such as moisture management and anti-microbial properties. Delta Galil Shares ended 0.35% higher at 114.40 shekels ($29.37). (TheMarker Staff)

Tel Aviv shares steady after Sunday blowout

Tel Aviv shares recovered Monday from the pounding they took the day before, with blue chips like Teva Pharmaceuticals and Bezeq paving gains. The benchmark TA-25 index rose 0.2% to finish at 1,498.94 points, while the TA-100 gained 0.25% to 1,296.50, as 1.43 billion shekels ($370 million) in shares changed hands. Volume leader Teva rose 1.9% to close at 257.70 shekels and Bezeq gained 2.9% to 8.34. El Al Airline jumped 7.1% to 2.82 shekels after Psagot Investment House initiated coverage of the stock with a target price of 4.50 shekels. Spacecom, which had been hit hard by the loss of its Amos 5 satellite, ended 5.1% higher to 31.24. Energy shares were the exception to the market’s move higher as the price of Brent crude oil extended its slide on Monday to its lowest level in more than 11 years. Avner ended down 4.1%ar 1.26 shekels and Ratio lost 2.9% to 27 agorot. (Omri Zerachovitz)