Ormat Industries Ltd. (ORMT), the second- largest operator of geothermal power plants in the U.S., rose in Tel Aviv trading after Gazit Inc. bought more shares amid reports of a contest for control of the company.
Gazit, a real-estate company controlled by Israeli businessman Chaim Katzman, bought about 1.48 million shares, bringing its holding to 18.4 percent of the company from 17.2 percent, Ormat said in a statement to the Tel Aviv Stock Exchange today. Gazit is the second-largest shareholder after Lucien and Yehudit Bronicki, the husband and wife team that founded and manage Yavne, Israel-based Ormat. The Bronickis have a 27.7 percent stake in the company.
Yediot Ahronot reported last week that the Bronickis are concerned Gazit, which began purchasing shares in June, is seeking to wrest control of the power plant operator.
Ormat shares rose as much as 1.84 shekels, or 3.2 percent, to 58.59 shekels, and traded at 57.75 shekels at 2:37 p.m.
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