Breaking Bread: CEO Balks at Angel Selloff to Cousin

Yaron Angel has reportedly rejected a proposal to sell his shares in the family bakery company, Salomon A. Angel, to his cousin Gadi Angel, even though the cousin was offering a hefty premium over the company's trading price on the Tel Aviv Stock Exchange.

Alternatively, Gadi Angel offered to buy out his cousin in a Buy Me Buy You arrangement. That would have involved each tendering a binding offer to buy out the other, but Yaron Angel rejected that idea, too.

Yaron Angel owns 22.38% of the bakery company, and Gadi Angel owns 22.58%. The relations between them are less than gorgeous, as they say themselves: Gadi Angel's offers were tendered as part of a bridging procedure via attorney Eli Zohar. Furthermore, it appears that Yaron, as the company's CEO, doesn't want to sell his shares, while Gadi would be prepared to sell at a puffy premium over the going rate on the TASE.

Salomon A. Angel opened trading yesterday with a 3% jump that lifted its market capitalization to NIS 213 million.

Gadi Angel wants between NIS 80 million to NIS 100 million for his stake, say capital market sources. They also say that other entities, including rival bakeries and investment funds, had been sniffing at the Angel company, but were put off by the price Gadi is demanding.

The Angel bakery is one of the biggest in Israel. It specializes in standard and special breads, cakes and other confectionaries, and is the only such company listed on the stock exchange. Sales turnover amounted to NIS 511 million in 2007, on which it netted NIS 18.5 million. First-quarter sales were NIS 150 million, on which it earned NIS 4.6 million.

Yaron Angel commented that there are no negotiations, nor have there been any, to sell the bakery to a third party.

"We reported that we have problems and that we're looking for ways to resolve them. We announced that as part of our efforts, we have looked at the possibility of one of the parties buying out the other. At present there are no negotiations and there is nothing concrete. We are undergoing a mediation process, during which suggestions are constantly being raised," he said.