IncrediMail insiders continue to sell shares

The share has been a hot item lately, rising 327% since January to a peak of $10.56 two weeks ago.

Parties at interest in Israeli companies traded on Wall Street are continuing to sell shares. IncrediMail Ltd. (Nasdaq:MAIL: TASE:MAIL) co-founder and president Yaron Eldar has sold shares in the company two weeks after his cousin, co-founder and CEO Ofer Eldar did the same.

In two separate notices to the US Securities and Exchange Commission (SEC) on Friday, IncrediMail stated that Yaron Eldar sold 920,000 shares at $9.49 per share, for a total of $8.7 million (NIS 33 million). Before the sale, he owned 15.3% of the company; the sale reduced his holding to 5.3%. A few more sales, or an increase in the company's share capital, could push him below the 5% party at interest threshold.

Yaron Eldar is now the second smallest party at interest in IncrediMail. Ofer Eldar still owns 18.8% of the company after selling shares for $3.6 million two weeks ago. Institutional investors Liechtenstein-based Alpha Capital Anstalt owns 7.8% and Mahony Associates Inc. owns 3.3%.

The timing of Yaron Eldar's sale is no surprise, for two reasons. First, IncrediMail's share has been a hot item lately, rising 327% since the beginning of the year to a peak of $10.56 two weeks ago. Second, relations between Yaron and Ofer Eldar have cooled as they disagreed over management of the company, and Yaron was forced to give up his CEO post to Ofer. Even though Yaron is still listed as president and director, he plays no active role in the company's operation or strategic planning. The sale of shares is another sign of his separation from it.

IncrediMail's share closed at $9.34 on Nasdaq on Friday. The share 2.9% by midday on the TASE today to NIS 34.52

Published by Globes [online], Israel business news - www.globes-online.com - on September 13, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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