Ehud Barak and US businessman Ira Rennert are considering bidding in the tender to acquire Israel Military Industries Ltd. (IMI). The privatization of the government defense company is due to begin soon.
Barak's aides declined to comment on the report.
Barak is a former IDF chief of staff, prime minister, and minister of defense. Rennert (79) has good relations with him and with Prime Minister Benjamin Netanyahu, and other ministers, as well as with former Prime Minister Ariel Sharon. "Forbes" estimates Rennert's fortune at $5.5 billion. He made his fortune in junk bonds.
IMI's board of directors approved the privatization proposal in September. The proposal includes writing off the company's NIS 2 billion debt to the state, a NIS 2 billion safety net to guarantee employees' rights, the laying off of 950 employees, moving the company's operations to the Negev by 2020, and vacating its current premises in Ramat Hasharon.
IMI had NIS 1.8 billion in sales in 2012, and 2013 sales are projected to be NIS 1.9 billion. Based on this figure, market sources estimate IMI's price tag - assuming that the government this time goes through with the sale - at NIS 2 billion. The estimates range from a low end of NIS 1-1.5 billion to a high end of NIS 2.5-3 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on October 2, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013