Business in Brief: July 11

By GLOBES
July 11, 2011 04:47

Bank of Israel comptroller resigns; Delek Real Estate faces troubles abroad; Teva to face key court hearings.

3 minute read.



Business in Brief: July 11

Teva. (photo credit: Ariel Jerozolimski)

Bank of Israel comptroller resigns • By ADRIAN FILUT

Bank of Israel Comptroller Raphael Lankri has resigned after 18 years at the central bank. Lankri is considered one of the bank’s most controversial as well as one of its most powerful figures.

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The Bank of Israel said, “Lankri expressed his wish to leave several months ago, but the governor and director general asked him to wait until the bank's new ERP system was installed.” Until 2007, Lankri chaired the central bank’s workers committee and handled the salary and labor conditions negotiations with the Finance Ministry. Immediately afterwards, he was appointed head of human resources, a move that was considered highly unusual. Two years ago, he ran for the post of director general, but failed to become a finalist. Hezi Kalo was appointed to the post.

Delek Real Estate faces troubles abroad • By SHIRI HABIB-VALDHORN

European banks are appointing receivers for more properties owned by Yitzhak Tshuva-controlled Delek Real Estate through its subsidiary Delek Global Real Estate.

In Germany, a bank has appointed a receiver for the T Systems Building in Mülheim, and in the UK, the company's portfolio of car parks faces higher interest rates on its loans following a downward revaluation. The actions come after the Royal Bank of Scotland plc appointed a receiver for the UK Marriott Hotels portfolio, in which Delek Global Real Estate owns a 17% stake.

Delek Global Real Estate owns 60% of the T Systems office building, and Dorea Investment and Developments owns 20% and has a NIS 3.8 million exposure to the property. The companies were due to repay the secured loan against the property in January. When they failed to do so, the lending agreed not to take proceedings during negotiations. The second extension expired at the beginning of July.

Teva to face key court hearings • By SHIRI HABIB-VALDHORN

Teva Pharmaceutical Industries will have a busy day in court on Monday. A US court will hear the company's case against the developers of generic Copaxone, Teva’s multiple sclerosis treatment. A UK court will hear Pfizer Inc’s patent infringement case against Teva on Lipitor.

News from the hearings could affect Teva’s share price.

Teva is suing Mylan, Momenta Pharmaceuticals, Novartis AG unit Sandoz, and India’s Natco Pharma for patent infringement of Copaxone. Copaxone has $3 billion in annual sales.

The defendants claim that Teva’s conduct in registering the patents is inequitable and that it is attempting to win summary judgments. This hearing is separate from the legal proceedings scheduled for September.

Sources believe that the claimants will find it difficult to persuade the court that Teva is engaged in unfair conduct.

TA-25 reaches highest level since May The TA-25 Index increased to its highest level since May 22 on Sunday, advancing 0.7 percent to 1,268.44 at the 4:30 p.m. close in Tel Aviv. Investors traded about NIS 888.5 million in shares and convertible securities.

Kamor Motors Ltd. surged the most since at least November 2006 when Bloomberg began tracking the shares, soaring 31% to NIS 16.40. The controlling shareholders of the importer of BMW vehicles to Israel said they were in talks to sell their stakes to Delek Automotive Systems Ltd. (DLEA IT) based on a value of NIS 245 million. Kamor, which owns about 64% of Kamor Motors, jumped 5.1% to NIS 9.461 shekels, the highest since May 2010.

Delek Automotive increased 3.6%, the most in a week, to NIS 37.98.

Ophir Optronics Ltd. (OPIR IT) advanced the most since at least February 1996, when Bloomberg began tracking the shares, rising 73% to NIS 25.90. The maker of optical instruments agreed to be acquired by Newport Corp. for $230 million. • Bloomberg


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