Formula Systems sells BluePhoenix shares

Sale represents about 46 percent of outstanding shares of Israel-based computer technology company
Associated Press

Israel-based computer technology company BluePhoenix Solutions Inc. said Friday its major shareholder, Formula Systems Ltd., will sell its 8 million shares to international institutional investors.

The sale represents about 46 percent of the outstanding shares of BluePhoenix, the company said.

Once the sale is complete, Formula will no longer own any shares of BluePhoenix, and some or all of Formula's director designees will resign from the company's board of directors, BluePhoenix said.

Formula said the sale will generate more than $60 million. The company also said it will recognize about $18 million in capital gains when the sale is over.

The purchase is expected to be completed June 18. The sale was led by the Unterberg Towbin investment bank, which was recently acquired by the British investment bank Collins Stewart.

BluePhoenix shares fell 42 cents to close at $8.79 and Formula Systems shares rose 1 cent to close at $13.56.

Kobi Paz contributed to the report