In an unexpected development, it was announced last night that US writer, political advisor and businessman Dan Senor had bid $15 million (NIS 57 million) for "Globes" and its printing house. Senor submitted his bid to the investment advisor hired by Eliezer Fishman for the sale of his assets a few days before the convening of the Monitin (Globes parent company) board of directors. Sources insist that the bid is very serious, but has been reduced by 10% to NIS 51.7 million ($13.5 million) because of the hesitation in addressing it. It also depends on due diligence by Senor's representatives.
Senor told "Globes" today, "I can confirm my interest in acquiring the "Globes" newspaper. Without commenting on the details of the bidding procedure, I believe that "Globes" and its journalists have a promising future as an independent media entity in its own right. Israel has a growing economy that is attracting increasing interest, as I learned myself when I jointly wrote my book about the Israeli economy. "Globes" should continue to be the Israeli economy's voice to the world."
Notable in this context is the fact that "Globes" English language website was one of the things that triggered Senor's interest in the deal.
Senor, 45, is an American-Jewish journalist and author who served in consultancy and spokesperson positions in the US administration. He was a Pentagon and White House advisor during the Second Iraq War, and later served as chief spokesman for the Coalition Provisional Authority in Iraq. Together with Saul Singer, Senor's brother-in-law, he wrote the bestseller "Start-up Nation." The book's title has become a household word and a flattering nickname for Israel.
Senor is active in the US investment industry, and if the "Globes" deal goes through, it will be his first investment in Israel. In contrast to media reports, the initiative and bid to acquire "Globes" as a financial newspaper is not related to American-Jewish billionaire Paul Singer. Senor wants to buy "Globes" with his own money, and is not serving as a front for anybody. As far as is known, he has no close relations with any politicians in Israel; what interests him is Israel's economy, not its politics.
Senor was an advisor to 2012 Republican presidential candidate Mitt Romney. Regarded as a moderate Republican, he was an opponent of President-elect Donald Trump.
The Court did not know
In their role as receivers for Fishman's assets, Advocates Eyal Rosovsky and Ronen Matry were aware of Senor's bid, but did not report it to the Court or the Monitin board of directors, which was asked to help sell "Globes" and its printing house. The two lawyers allegedly failed to give important information about the real value of "Globes," as established between a willing buyer and willing seller before the newspaper's value fell as a result of the receivership proceeding. By establishing a price tag, Senor's bid allegedly could have helped create a basis for competition in the pricing process in which Russian billionaire David Davidovich bid NIS 45 million for the newspaper and the printing house, while "Jerusalem Post" and "Maariv" owner Eli Azur bid NIS 44.5 million, but neither the Court nor the other bidders were aware of the bid during the pricing proceeding.
The restoration of Senor's bid to the pricing process now requires renewed consideration. Adv. Ehud Sol from the Herzog Fox Neeman & Co. law firm, who is representing Senor, yesterday sent a letter to the Monitin board of directors renewing the bid, but citing a lower figure: $13.5 million, 10% lower than Senor's original bid. Rosovsky and Matry allegedly have a conflict of interest in the "Globes" tender, following which they are due to receive large legal fees. Matry has represented Eli Azur, one of the bidders, in many deals, while Rozovsky is a former personal representative in several matters pertaining to Alona Bar On, who together with her mother owns 25% of the shares in Monitin.
Representatives of Rosovsky and Matry said in response, "The receivers are unaware of any concrete binding bid to acquire the newspaper submitted by Senor to the company or to them. In their meeting with the receivers in early November, it was made clear that in order to make a binding bid, he sought to conduct a lengthy due diligence proceeding, which he said had not yet begun. Together with the other potential bidders, Senor's representatives later entered the information room opened by the receivers. In contrast to the others, however, the representatives elected not to make a binding bid to acquire the newspaper on the stipulated date, and they are now seeking better terms not granted to others in order to decide whether they want to make any binding bid, and on which terms. They are also providing no bank guarantee to back up their application.
"The other bidders made good binding bids, accompanied by bank guarantees, which were transferred to Monitin for its consideration. The bids submitted to Monitin and the receivers (as well as Senor's application) will be submitted soon to the Court, so that the latter can issue instructions to the receivers in the matter."
Published by Globes [online], Israel business news - www.globes-online.com - on December 22, 2016
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