The Ticker: Tiv Taam Wins Bidding for Eden Teva Market

Property & Building eyeing Gazit Israel; Mylan proxy adviser recommends clients vote against Perrigo takeover; TA-100 index closes at a record high.

David Bachar

Tiv Taam wins bidding for Eden Teva Market 

Food retailer Tiv Taam Holdings won control of Eden Teva Market, Israel’s biggest organic-foods supermarket chain, with a bid of 29.25 million shekels ($7.7 million), the company said on Sunday. Tiv Taam’s bid was just 250,000 shekels more than that of the Victory chain, whose CEO, Eyal Ravid, warned that the cost would result in higher retail prices. Tiv Taam rejected the claim. It added that it planned to keep the Eden Teva Market outlets kosher and closed on Shabbat, unlike the Tiv Taam stores. Half-owned by the ailing Mega chain, Eden Teva Market was forced into receivership, losing suppliers and customers that Tiv Taam will now have to win back. But Tiv Taam CEO Adi Cohen said he was optimistic. “The chain is too expensive and a bit too small, and it absorbed too much debt. Without the debt burden, we believe it is possible to revive it,” he reasoned. Tiv Taam shares ended 3.7% up at 2.20 shekels. (Adi Dovrat-Meseritz)

Property & Building eyeing Gazit Israel

Property & Building Ltd., the IDB group’s real estate unit, said yesterday it had submitted an offer to buy the Israeli portfolio of Gazit Israel. P&B is one of a handful of buyers that have made offers, but it has the advantage of 2.35 billion shekels ($620 million) in cash on its books, which the company disclosed as it published second-quarter results yesterday. “Strong liquid reserves, together with strong and stable cash flow, enable Property & Building to continue exploring business opportunities, for instance buying the assets of Gazit Israel,” said its chairman, Rafi Bisker. Gazit Globe has been paring back its Israeli business to focus on overseas after Gazit Israel’s A. Dori contracting unit got into deep financial trouble earlier this year. Gazit Israel develops and manages shopping malls. It has estimated assets of 3.5 billion shekels and debt of about 2.5 billion. P&B shares ended up 1% at 307 shekels. (Shelly Appelberg)

Mylan proxy adviser recommends clients vote against Perrigo takeover

ISS Proxy Advisory Services recommended on Friday that its clients vote against Mylan’s $30 billion hostile takeover of Perrigo, but Mylan’s largest hedge fund investor put its money behind the combination. Paulson & Company, which owns 4.6% of Mylan, said it voted for the generic drug maker to pursue its tender offer for Perrigo shares. Paulson said Perrigo would add to Mylan earnings based on cost savings alone and that combining generic drugs and over-the-counter medicines would create growth. Paulson also disclosed on Friday that the firm had purchased about 2.1 million Perrigo shares in a range of $188.24 to $192.08 each on Thursday. But ISS criticized the combination, saying it would likely take years for these benefits to materialize and that the offer was “not a compelling acquisition strategy.” Perrigo has rejected Mylan’s cash and stock offer, now worth about $200 per share. Perrigo ended up 2.2% at 740 shekels ($195.83) in Tel Aviv. (Reuters)

TA-100 index closes at a record high

The Tel Aviv Stock Exchange’s TA-100 index record reached a record high yesterday in a session of across-the-board gains. The broad TA-100 index rose 0.6% to close at 1,497.39 points, while the benchmark TA-25 index, which touched a record 11 days earlier before retreating, ended 0.4% higher at 1,729.09. Turnover was a relatively brisk 613.7 million shekels ($162.4 million) for a Sunday. Cellular operators continued to rally, with Cellcom Israel ending 5.3% higher at 24.95 and Partner Communications (Orange) adding 3.87% to 17.54. Kardan Yazamut surged 29.5% to a 1.25-shekel close after Gil Deutsch and Roni Biram bought a 10% stake in the property developer at a 23% premium in an off-the-floor translation. One notable exception to yesterday’s rises was Teva Pharmaceuticals, which led the most actives on a 1.8% drop to 2621.70 shekels.  Elbit Systems finished 0.25% lower, at 314.30, despite reporting that it won a $27 million-contract from an unnamed Asia-Pacific country. (Omri Zerachovitz)