Dankner files Supreme Court appeal on IDB

The former controlling stakeholder of Israel’s largest conglomerate is seeking to overturn a decision that ousted him from the group.

February 19, 2014 23:07
1 minute read.
Nochi Dankner in court, June 9, 2013.

Nochi Dankner in court 370. (photo credit: Tal Shahar/Yediot/poll)

Nochi Dankner is not going quietly.

The former controlling stakeholder of IDB Holdings, Israel’s largest conglomerate, filed a Supreme Court appeal on Wednesday seeking to overturn a decision that ousted him from the group.

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In January, Tel Aviv District Court Judge Eitan Orenstin approved a December bondholder agreement to turn the company over to Eduardo Elsztain and Moti Ben-Moshe. Dankner protested and requested a review, suggesting that Ben-Moshe lacked the resources to follow through on the deal.

Orenstein agreed to the review, but ultimately ruled that the “condition to put the court ruling into effect has been fulfilled.”

Because the review was kept confidential, however, Dankner is arguing that the court prevented him from being able to examine its veracity.

The amount of time he had to respond to the report, he said, was very limited, meaning he could not have possibly covered the necessary material in the short timespan given. Further, he said, the Israel Securities Authority did not play a proper role in the review.

As a result, Dankner argued, the report should be disqualified and the decision overturned.

IDB owns Cellcom, Shufersal, Clal Insurance and several other large Israeli companies.

Regardless of who controls it, the company is expected to be forced to restructure in the coming four to six years in compliance with regulations that limit so-called pyramids, companies whose subsidiaries own subsidiaries.

IDB is the largest such company in Israel.

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