Nochi Dankner loses control of IDB

The Eduardo Elsztain-Motti Ben-Moshe consortium received over 75% of the bondholders vote.

December 8, 2013 20:14
1 minute read.
Nochi Dankner in court, June 9, 2013.

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

The era of Nochi Dankner as the controlling shareholder of IDB Holding Corp. Ltd. is over. The Eduardo Elsztain-Motti Ben-Moshe consortium received over 75% of the bondholders vote for a clear victory this evening. In the first round of voting Dankner received 35% of the votes with Bank Leumi, one of the major institutional investors in IDB, abstaining. In the second round Bank Leumi voted for the Elsztain-Ben-Moshe consortium, handing them a crushing victory.

Earlier in the day Bank Leumi had paved the way for Elsztain's victory saying, "Bank Leumi's board of directors decided to abstain in tonight's vote on the two bids for the acquisition of IDB Holding," said the bank in a statement, adding, "In its vote, Bank Leumi expresses its dissatisfaction with the two bids submitted by the two consortia. However, Bank Leumi believes that a quick solution should be drawn up and a settlement reached for the creditors of IDB Holding and IDB Development, and it will therefore support in its second vote, if there is one, the bid that will win the most votes in the first vote."

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The Elsztain-Ben-Moshe consortium has reportedly won 70-75% of the IDB bondholders' votes. The supporters include the IDB bondholders representative comprising Gilad Pension Fund, Excellence Investments Ltd., Psagot Investment House Ltd., Harel Insurance Investments and Financial Services Ltd., and Meitav DS Holdings Ltd., and private bondholders representative by Ohad Aloni and Keren Brosh.

If the Elsztain-Ben-Moshe consortium does not win 75% of the votes, a second voting round will be held on the bids. IDB's creditor banks, Bank Leumi, Mizrahi Tefahot Bank, and Credit Suisse Group AG are expected to join the majority of bondholders in the second round in favor of the Elsztain-Ben-Moshe consortium.

Dankner's aides have realized that this is the decisive round, but Dankner personally has no plans to give up, and he is reportedly planning legal action against the vote. His legal team, led by Adv. Ram Caspi is already drawing up objections to the Elsztain-Ben-Moshe consortium's bid will be field with the court on Wednesday.

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