The Ticker / Teva on Hunt for a Takeover

Analysts are keen on Kenon stock; U.S. Moinian Group to sell bonds in Tel Aviv; Perrigo in tie-up to make gummy vitamins; falling oil weighs on Tel Aviv shares.

Ofer Vaknin

Teva on hunt for a takeover

Teva Pharmaceuticals should be eying a major acquisition this year and a leading candidate is Perrigo, a U.S. maker of generic over-the-counter medicines traded on the Tel Aviv Stock Exchange, Bloomberg News said on Monday, citing analysts. Another possible takeover targets is Sweden’s Meda AB. Teva was one of the big global drug makers that didn’t join in last year’s mergers and acquisitions spree, the report notes, but it faces problems as generic versions begin to appear of its best-selling Copaxone multiple sclerosis treatment and needs new products to restore its luster. Analyst Kevin Kedra of Gabelli & Company told Bloomberg that Teva had enough capital to pursue a major acquisition and low debt. Teva shares rose 0.7% to 225.50 shekels ($57). (TheMarker)

Analysts are keen on Kenon stock

Kenon Holdings rose more than 13% in its first two days of trading on the Tel Aviv Stock Exchange, but analysts say the share price can go much higher. Meitav Dash’s Amir Adar said the holding company, spun off from The Israel Corporation last week, should be worth $27.80 shekels, a 34% premium on its closing price on Monday. He values Kenon at a 30% discount to the $1.9 billion value of its assets, which include TowerJazz, IC Power and the Chinese auto-making joint venture Qoros. Psagot’s Noam Pincu values Kenon shares at a low $24 each. He puts Kenon’s net asset value at a lower $1.6 billion but says the shares should only be trading at a 20% discount. Both analysts say IC Power, which operates generating plants in Latin America, is Kenon’s chief asset, worth up to $2 billion. Kenon shares, which rose 6.5% on Sunday, rose another 6.5% on Monday to close at 81.99 shekels ($20.72). (Yoram Gabison)

U.S. Moinian Group to sell bonds in Tel Aviv

Moinian Group, led by the Iranian-American entrepreneur Joseph Moinian, is due to become the latest U.S. property company to sell bonds in Israel, through Leumi Partners, the investment banking arm of Bank Leumi. Moinian Group, which controls some 30 properties worth $8 billion, will issue at least 1 billion shekels ($250 million) in bonds in April or May, making it among the biggest in Israel by a U.S. property developer. A prospectus will be published as early as next month. The Moinian issue will marks Leumi’s first foray into the segment of U.S. bond issuers, which until has been controlled by Poalim IBI and the team of Rafi Lipa and Amit Gal. Leumi executives have made multiple trips to New York to market their services. (Michael Rochvarger)

Perrigo in tie-up to make gummy vitamins

Perrigo is teaming up with Ferrara Candy Company of Illinois to make over-the-counter gummy vitamins and nutritional supplements to be sold at leading retailers across the United States. The two companies said on Monday that a five-year supply agreement will give Perrigo, a maker of OTC generic drugs, exclusivity on a full line of store-brand gummy vitamin, mineral and supplement products using Ferrara’s gummy technology. “This strategic supplier relationship extends our company’s reach into a financially attractive and expansive gummy market,” said Perrigo CEO Joseph Papa, which the company estimated is worth $650 million today and could grow to $1 billion in the next two years. Perrigo shares edged down 0.3% to close at 666.30 shekels ($170). (TheMarker)

Falling oil weighs on Tel Aviv shares

Tel Aviv shares turned lower late on Monday as world oil prices fell another notch. The TA-25 index ended down 0.2% for the day at 1,463,03 points while the TA-100 declined 0.1% to 1,285.49. Turnover was 1.38 billion shekels ($350 million). Real estate, energy and cellphone stocks were all sharply lower. Partner Communications lost 3.9% to end at 15.10 shekels and Cellcom Israel fell 2.6% to 26.22. Frutarom led TA-100 stocks lower on a 4.7% decline to 117 shekels. Ashtrom Group, however, jumped 9.2% to 9.456 shekels after Meitav Dash started coverage of the stock with Buy and said its shares should reach 12.50 shekels. The government’s shekel bond due in 2024 rose 0.38% to cut its yield to 2.02%. (Eran Azran)