IDB Holding Corp. rose to the highest level in almost three months after shareholder Nochi Dankner raised his direct stake in the company to 6.34 percent.
The shares gained 4.4 percent to 19.36 shekels, the highest since May 16, at the close in Tel Aviv. Discount Investment Corp., a unit of IDB, rallied 23 percent, the most since Bloomberg started tracking the data in 1995.
Dankner, the Israeli businessman who controls IDB Holding through Ganden Holdings Ltd., bought 75,569 shares yesterday at 17.89 shekels a share, IDB said in a filing to the Tel-Aviv Stock Exchange today. The acquisition increased Dankner’s direct ownership to 2.93 million shares.
Dankner has been purchasing IDB shares, which have plunged 51 percent this year on concern the company may struggle to pay its obligations. Dankner on May 19 said he will honor all his debt to investors and isn’t considering the option of asking them to accept a so-called haircut arrangement.
The yield on Discount Investment’s 5 percent shekel bonds due April 2016 fell 2.67 percentage points to 7.13 percent, the lowest level since July 22. The yield on IDB’s 5.1 percent notes maturing in December 2020 dropped 86 basis points, or 0.86 percentage point, to 58.42 percent.