Accountant General Michal Abadi-Boiangiu, the only top Ministry of Finance official who opposes the sale of Israel Chemicals Ltd. (TASE: ICL) to Potash Corporation of Saskatchewan Inc. (NYSE; TSX: POT), will be the ministry official overseeing a possible deal.
Incoming Ministry of Finance director general Yael Andoran will not be allowed to handle a sale of Israel Chemicals for six months, because of previous business ties with the Ofer family, which controls the company through Israel Corporation (TASE: ILCO). She resigned from her position as external director at Israel Corp. subsidiary Oil Refineries Ltd. (TASE:ORL) when she took up the ministry post, and, due to conflict of interests issues, she may not handle the affairs of Israel Chemicals for six months or Oil Refineries for one year.
The Ministry of Finance said in response, "Andoran served as an external director at Oil Refineries for eleven months. For this reason, it was decided that she would not deal with any issue related to the affairs of Oil Refineries at its subsidiaries for one year. In addition, she will not not deal with any issue related to the affairs of Oil Refineries' controlling shareholders and companies they control for six months."
Abadi-Boiangiu's responsibility for handling a sale of Israel Chemicals to Potash Corporation means that there is little chance of a deal, as she would have to approve it. She objects to the amount of royalties paid to the state, and Potash Corporation has not yet clarified how much quarrying it will carry out, or the price for potash that it will charge. Most top Ministry of Finance officials believe that the government will make sure to protect its rights.
Published by Globes [online], Israel business news - www.globes-online.com - on April 17, 2013
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