Sources inform "Globes" that VeriFone Holdings Inc. (NYSE:PAY), which acquired Lipman Electronics Engineering Ltd. (Nasdaq:LPMA; TASE:LPMA) for $793 million, may move its manufacturing and R&D activity to Israel, creating 1,000 jobs.
Investment Promotion Center director Hezi Zaieg told "Globes" in response, "For the past six months, the Investment Center has been negotiating with Lipman's controlling shareholders, including Meir Shamir, for the transfer of VeriFone's manufacturing activity to Israel. Shamir believes that there is a very good chance that this will happen. The proposal is to move VeriFone's manufacturing activity to a National Priority "A" area, with preference for Jerusalem, so that within two or three years, VeriFone's R&D and manufacturing activity will be transferred, which will create 1,000 jobs for the Israeli economy."
Verifone chairman and CEO Douglas G. Bergeron and Meir Shamir will tonight meet Zaieg and Ministry of Finance director general Yossi Bachar. Tomorrow, Bergeron will likely meet Prime Minister Ehud Olmert, and later Minister of Finance Abraham Hirchson. He may speak about VeriFone's plans to move activity to Israel. Shamir told "Globes" that part of Verifone's considerations in acquiring Lipman were the transfer of VeriFone's R&D activity to Israel.
Sources added that VeriFone will receive favorable investment terms, including a full tax exemption package, including the right to withdraw dividends for 15 years as a foreign investor under the Law for the Encouragement of Capital Investment. The company will probably also be offered an employment package, granting NIS 200 per employee per month in salary support for new employees hired in Israel.
Published by Globes [online], Israel business news - www.globes.co.il - on October 16, 2006
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