IDB Shares, Bonds Gain on Ganden Stake Report: Tel Aviv Mover

IDB Holding Corp. (IDBH)’s bonds and shares jumped after Calcalist newspaper reported that controlling shareholder Ganden Holdings Ltd. is in talks to sell a stake to a Latin American businessman.

The yield on IDB’s 4.4 percent notes maturing in June 2014 fell 638 basis points, or 6.38 percentage points, to 76.24 percent at the close in Tel Aviv, according to prices compiled by Bloomberg. IDB shares advanced 5.2 percent, the most since Aug. 19, to 14.55 shekels. Discount Investment Corp. (DISI), 74 percent owned by IDB, soared 16 percent to 7.3 shekels, the highest since June 19.

Nochi Dankner’s Ganden is nearing an agreement to sell a 9 percent stake to Eduardo Elsztain, Calcalist reported. Elsztain would pay about 1 billion shekels ($253 million) based on Ganden’s valuation, the newspaper reported, without saying how it obtained the information.

IDB is trying to get cash infusions after its second- quarter financial results included a “going concern” warning. The company said on Sept. 5 a Tel Aviv District Court instructed it place 35 million shekels owed to Series Bet bondholders in trust and gave the company 21 days to reach an agreement with bondholders over payments. Calls to IDB’s spokeswoman’s office weren’t immediately returned.

The benchmark TA-25 index rose 0.3 percent. Cellcom Israel Ltd. (CEL), 47 percent owned by Discount, climbed 4.3 percent to 31.53 shekels, the highest since May 17.

To contact the reporter on this story: David Wainer in Tel Aviv at dwainer3@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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