A Sefen Industries and Investments Ltd. (TASE: SEFN) shareholder is demanding the cancellation of an options grant which was carried out on Monday. The shareholder threatened that if the transaction is not cancelled, he will take legal action against every employee at the company.
Sefen's share price soared 288% on Sunday, and rose a further 17% on Monday, on rumors, which proved true, that the company was to enter the oil and gas exploration field. Yesterday, the share tumbled 38% and it is falling further today, on concerns that it may not be able to acquire the stake in the Sarit license.
Sefen reported yesterday to the Tel Aviv Stock Exchange (TASE) that a minority shareholder claims that the options grant to controlling shareholders was not legal, and that there is apparently a concern of use of insider information.
Published by Globes [online], Israel business news - www.globes-online.com - on September 16, 2010
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