"Many people tried to persuade us to close "Ma'ariv", but that was not the choice of the newspaper's management or of IDB Holding Corp. Ltd. (TASE:IDBH) chairman Nochi Dankner, who made, and is making, every effort to bring in an investor who will assume the task of continuing to save it, to ensure that "Ma'ariv" will continue to exist and provide a livelihood for its employees, and to serve Israeli society and democracy," said Ma'ariv Holdings Ltd. (TASE: MARV-M) chairman Daniel Yaakobi in a letter to employees today.
"Discount Investment Corporation (TASE: DISI) and IDB Holding Corp. Ltd. (TASE:IDBH) will not receive a single shekel from these transactions. All the proceeds will go to Modiin Publishing in favor of the employees and creditors," Yaakobi added.
Responding to claims that the company had not made the mandatory employer provisions for pensions and compensation, Yaakobi said, "Since IDB took over Ma'ariv, all money for compensation and benefits were paid to every employee, every month. The newspaper's management and its parent company are continuing their efforts to ensure full payment of salaries by Rosh Hashana."
Yaakobi said that the sale of Ma'ariv's assets and the sale of its printing house were intended to preserve the employees' rights and to repay the company's debts.
The parties in the negotiations today rejected reports that the sale of "Ma'ariv" had foundered. Sources at both "Makor Rishon" publisher Shlomo Ben-Tzvi and IDB said that talks were continuing, and would reach a deal and signing by the end of the week.
"Globes" reported that Ben-Tzvi has promised to keep no more than 250 "Ma'ariv" news employees and that he expects Discount Investment to complete the streamlining at the newspaper before the transfer of ownership, which will happen by the end of the month, if all goes as planned.
Published by Globes [online], Israel business news - www.globes-online.com - on September 11, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012