Hapoalim Likely to Treat Dor Chemicals With Kid Gloves

Banking sources yesterday said Bank Hapoalim will most likely treat Zvi Barenbaum's acquisition of Dor Chemicals from the Dankner clan as a related parties transaction - a deal with the bank's own controlling shareholders - although regulatory limitations do not apply.

Bank Hapoalim has financed the majority of Barenbaum's business and is likely to finance the Dor purchase.

As well as controlling Dor, the Dankner family is an 11.3 percent partner in the bank's controlling stake. There are concerns that the Dankner family interest in transferring control of Dor could lead to pressure on the bank, even if Hapoalim opted not to finance the deal, which will close at twice Dor's market price. The Dor deal would generate substantial profits for the Dankners, in additional to its pivotal role in their restructuring of Ellern.