(photo credit: courtesy)
Bank Leumi on Thursday named David Brodet as its chairman for a three-year
tenure, replacing Eitan Raff, who resigned after 15 years in
Other candidates under consideration included former Israel
Phoenix Assurance chairman Ehud Shapira and Moshe Dovrat, a Bank Leumi director.
The appointment must be approved by the Bank of Israel and the Finance
Government seeks approval to sell its Bank Leumi shares
Candidates named for Leumi board
Brodet, 66, had a long career in the civil service before
moving into the private sector, where he held key positions, including chairman
of Bank Mizrahi Tefahot, Yes Satellite Television and Blue Square. He was budget
director and director- general at the Finance Ministry in the 1990s and was
deputy director-general at the Industry, Trade and Labor Ministry in the
Shlomo Eliahu, Bank Leumi’s largest individual shareholder with a
9.6 percent stake, earlier this year proposed that former Bank of Israel
governor David Klein become chairman. But Klein was less likely to be chosen
because of his close ties with Eliahu.
In recent months, Eliahu has been
trying to put together a group of investors to form a controlling stake in Leumi
as the government is planning to sell its stake in the bank.
Ministry is in the process of selling the government’s 11.46% stake in
Leumi. It will be sold by the accountant-general through block trades
financial institutions, which will offer the shares to investors in
It is valued at about NIS 2.5 billion, out of which 10.5% will be
allocated for sale to the public and the remainder to the bank’s
government plans to sell its shares in blocks to institutions until the
The Treasury wants to sell its stake without creating a
controlling core in the bank.
Finance Minister Steinitz this week
published a draft amendment to the Marani Law in the Banking Ordinance
the government to sell its Leumi shares without creating a controlling
amendment includes provisions so that shareholders can appoint board
banks on their behalf, while not allowing actual control by any single
Leumi is the last of the country’s lenders to remain under
government control, after the government took over the major banks two
The government has been seeking potential buyers, mostly among
foreign lenders, since 2007. After several attempts to find a buyer or
for a controlling core failed, the government decided to complete the
privatization of Bank Leumi through block trades.
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