El Al Drops Most in Three Months as Fimi Ditches Investment Deal
El Al Israel Airlines Ltd. (ELAL) declined the most in almost three months after Fimi Opportunity Funds decided to back out of an investment of as much as $75 million for a stake in the country’s flagship carrier.
The stock plunged 7.6 percent, the most since July 14, to 0.535 shekel at 2:46 p.m. in Tel Aviv, with volume surging to 5.6 times the three-month average. El Al said it was notified by Fimi that the agreement was canceled after terms weren’t met, according to a bourse filing. In April, when the deal was announced, El Al said it was subject to the renegotiation of the carrier’s employee contracts.
The airline is struggling to boost profitability amid increasing competition after posting losses in four of the last five years. In February, El Al said it would cut 200 temporary jobs to trim costs.
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