Less than a week has passed since the Tel Aviv District Court decided to transfer control of IDB Holding Corp. Ltd. (TASE:IDBH) from Nochi Dankner to Eduardo Elsztain and Moti Ben-Moshe (subject to an investigation into their sources of finance), but things are already starting to move. Sources inform "Globes" that Aharon Fogel, formerly chairman of Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), and the person whom Elsztain and ben-Moshe have tapped as the next chairman of IDB, has already started work.
In the past few days, Fogel has held meetings with some of the IDB Holding bodholders representatives, apparently to discuss the make-up of the board of directors that will be appointed at the company. The Migdal board under Fogel was manned my experienced professionals from a variety of backgrounds, including several former officials at the Ministry of Finance, where Fogel was director-general.
According to Elsztain and Ben-Moshe's debt settlement proposal, a temporary board will be appointed to IDB for a transitional period, to be headed by Fogel. Five of the nine directors will be representatives of the creditors, two will be external directors, and two will represent Elsztain and Ben-Moshe. After the debt settlement is implemented, the composition of the board will be: six directors on behalf of the investors, two external directors, and one representative of the company's creditors.
The new controlling shareholders will have to address the question of Fogel's remuneration, after the fierce criticism of the generous remuneration packages that Nochi Dankner was wont to award senior office holders at IDB. As chairman of Migdal, Fogel's average annual salary cost was over NIS 3 million.
Fogel (66) held various positions at the Ministry of Finance in the 1980s and 1990s, becoming director-general in 1992. He has also served as chairman of Ness Technologies.
A source close to Fogel told "Globes" yesterday, "The matter is not settled. Fogel is not at present dealing with what will happen after the debt settlement at IDB is completed. There's a good chance that it will happen, but it hasn't happened yet. In any event, we shouldn't put the cart before the horse."
Meanwhile, the investigation by the Israel Securities Authority and the Official Receiver into Ben-Moshe's sources of finance continues. It is being conducted mostly in Germany, where Ben-Moshe's business activities are centered. It seems likely that the investigators will request an extension beyond the Sunday deadline set by the court.
Published by Globes [online], Israel business news - www.globes-online.com - on December 24, 2013
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