Koor Surges to 6-Month High on Acquisition Talks: Tel Aviv Mover
Koor Industries Ltd. (KOR) surged to the highest level in more than six months after Discount Investment Corp. (DISI) sought to buy the stake it doesn’t already own in the Tel Aviv-based holding company.
Koor shares surged 5.8 percent to 55.45 shekels, the highest level since Aug. 1, at the 4:30 p.m. close in Tel Aviv. The shares have risen 16 percent since the joint announcement yesterday. Discount Investment owns 63 percent of Koor, according to data compiled by Bloomberg.
Israeli billionaire Nochi Dankner holds a stake in Discount Investment via his holdings in IDB Holding Corp. (IDBH) Dankner may be required to simplify the organization of his investments as the government reassess the “pyramid” structure of holding companies, said Raz Mor, an analyst at DS Securities & Investments in Tel Aviv.
“By merging with Koor, Dankner is eliminating a step in the holding pyramid,” Mor said.
A government appointed committee asked business groups with a “pyramid” structure to meet with its members to answer questions. The panel, which is seeking to find ways to boost competition, is set to release its findings in the next few days, the Finance Ministry said on Feb. 12.
Discount Investment slipped 0.9 percent to 24.60 shekels. IDB Holding, which owns stakes in both companies via its IDB Development Corp. subsidiary, dropped 1.4 percent to 42.45 shekels.
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