Sources inform “Globes” that that US real estate tycoons Charles Kushner and Daniel Strauss are holding talks to make a joint bid for Israel Discount Bank (TASE:DSCT). Kushner will apparently lead the acquisition, and Strauss will bid to acquire a holding at a lower price.
"Globes" was the first to report that Kushner was a serious contender to acquire Discount Bank. Strauss, who recently showed an interest in the tender, wants to submit a joint bid with Kushner. Kushner's longstanding associate, Minister of Finance Benjamin Netanyahu suggested to Kushner that he buy the bank.
Kushner and Strauss have been close associates for many years. Both are in the real estate business in New Jersey. Kushner also owns a small local bank, and his worth is estimated at $1 billion. Strauss, an owner of old-age homes, was once mentioned as a candidate for acquiring IDB Holding Corp. (TASE:IDBH).
The sources added that two other leading contenders for Discount Bank, Matthew Bronfman and US real estate tycoon Larry Mizel, are also trying to bring in more investors to participate in a joint bid for the bank. Bronfman and Mizel would head any consortium established.
Nevertheless, capital market sources recently believed that Mizel, who has financial resources to acquire Discount Bank equal to those of Kushner and Strauss, would withdraw his candidacy and not submit a bid for the bank.
The Ministry of Finance and MI Holdings (State of Israel Properties), which holds the state's share in the banks, plan to publish the Discount Bank tender next month. MI Holdings chairperson Michal Abadi-Boyanjo recently said Discount Bank would be privatized by the end of the year.
Published by Globes [online] - www.globes.co.il - on February 25, 2004