Discount Investment Corporation (TASE: DISI), a unit of IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner, announced today that CEO Ami Erel will leave his post when the company publishes its financial report for 2012 on March 19, 2013.
Erel's resignation seems like abandonment by one of Discount Investment's pillars. He has held positions at the company for over 20 years, earning tens of millions of dollars. In July 2012, he said that, in view of IDB's shaky financial situation he was in a "perfect storm."
Erel will keep his other jobs among Discount Investment's subsidiaries, including chairman of Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) and vice chairman of Makhteshim Agan Industries Ltd..
Dankner expressed his appreciation for Erel's activity at the company over the past 13 years, saying that he was pleased that Erel would continue in key management positions at IDB's important operational companies. "For me, Erel is not only an excellent manager, but also a friend," said Dankner. "I thank Ami for the 13 years during which he led Discount Investment to many business achievements in the face of major challenges. As Ami has said, we are not saying goodbye. Ami is not leaving the IDB family. He is staying on in key positions at our operational companies, and I am convinced that we will continue to benefit from him for many more years."
Discount Investment added that Dankner plans to propose to Discount Investment's board of directors to appoint Koor Industries Ltd. (TASE:KOR) chairman Lior Hannes as CEO. Hannes previously served as deputy CEO of IDB Development Corporation and is responsible for the company's international operations in London.
Hannes's responsibilities include Koor's investment in Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ). The company currently owns 2.3% of the bank, worth NIS 3.3 billion. The shares are collateral for a NIS 2 billion loan from Citigroup Inc. (NYSE: C) and Morgan Stanley (NYSE: MS). Koor lost NIS 1.5 billion on its Credit Suisse investment in 2011 (because of the plunge in the bank's share due to the debt crisis in Europe), but posted a profit of NIS 250 million in 2012.
Koor is expected to report a profit on its Credit Suisse holding for the first quarter of 2013, despite volatility in the bank's share price.
Published by Globes [online], Israel business news - www.globes-online.com - on March 12, 2013
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