Koor gets money back from Credit Suisse

The IDB unit has not yet decided how to record the reimbursement.

Koor Industries Ltd. (TASE:KOR) announced today that Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ) reimbursed it CHF 16 million (NIS 52.8 million) on the CHF 1.2 billion (NIS 3.9 billion) worth of shares that Koor bought last week. Koor now owns 3% of Credit Suisse.

The reimbursement is based on an agreement between Koor and Credit Suisse regarding the sale of share by the Swiss bank to a third party at a lower price than the sale of shares to Koor.

Koor added that is was examining whether to report the reimbursement a profit in its profit and loss statement, or add it the capital reserve for investments.

IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Discount Investment Corporation (TASE: DISI) owns 51.1% of Koor. Last week, Credit Suisse Group turned down a Swiss government bailout and said it would raise $8.75 billion on the open market. The largest amount would come from the Qatar Investment Authority, a sovereign equity fund, with additional investment from the Olayan family of Saudi Arabia, and Koor.

Koor fell 2.8% in morning trading today to NIS 140.80.

Published by Globes [online], Israel business news - www.globes-online.com - on October 22, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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