IDB Development wants to sell Clal Insurance to Koor. Koor bondholders are expected to object.
Nochi Dankner and the heads of IDB Holding Corp. Ltd. (TASE:IDBH) are working on a huge parties at interest deal that will partly solve the huge debt problem at the top of the pyramid - IDB Development Corporation. Market sources believe that IDB Development plans to sell its 54.97% stake in Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) to another subsidiary, Koor Industries Ltd. (TASE:KOR), in exchange for which, Koor, which owns shares in Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ), its main holding, will transfer NIS 2 billion to IDB Development.
If Dankner can carry out this plan, he should be able to solve IDB Development's debt problems for the coming years. However, Koor's bondholders are expected to oppose the deal, since it will almost empty Koor's cash reserves.
IDB Development directly owns 13.35% of Koor and indirectly owns another 70.11% through Discount Investment Corporation (TASE: DISI).
IDB's spokesman declined to comment on the report.
Published by Globes [online], Israel business news - www.globes-online.com - on January 6, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013