IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Elron Electronic Industries Ltd. (Nasdaq: ELRN; TASE: ELRN) has made an offer to purchase 1.46 million shares in Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) at $16.54 per share for a total of $24.2 million. The shares amount to about 5% of the medical device company. Elron said it has made the offer because of Given Imaging's long-term potential.
Shares in Given rose 3.5%, to $16.30, in Nasdaq trading on Friday.
Elron said that sister company Discount Investment Corporation (TASE: DISI) would not sell shares it owns in Given Imaging. Elron chairman Doron Birger and CEO Arie Mientkavich, both of whom are directors at Given Imaging, also reported that they would not sell shares as part of the offer.
Elron currently owns 27.4% of Given Imaging, and its stake will rise to 32.4% if the offer to purchase is successful. Elron, together with its affiliates, own 43.5% of Given Imaging, and their joint stake will rise to 48.5% if the offer is successful. Elron noted that if the response to the offer is more than 5% of Given Imaging's share capital, it will buy the shares offered on a pro rata basis.
Published by Globes [online], Israel business news - www.globes-online.com - on May 18, 2008
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