Bank Leumi. Sold
Photo: Omer Hacohen
PM welcomes Bank Leumi buyers
Prime minister holds ceremony to officially hand over Bank Leumi controlling shares to foreign private investors
In a festive ceremony held at Prime Minister Ariel Sharon's office Wednesday, representatives of the Cerberus-Gabriel hedge fund group presented the PM with a NIS 2.474 billion (about USD 500 million) check in exchange for 9.99 percent of Bank Leumi's controlling shares.
The investors have reserved the option to purchase another 10.01 percent of the shares held by the State within a year-and-a-half, and to reach a total holding of 20 percent of the bank's shares.
During the ceremony, Sharon stated he was always confident that the State would succeed in selling the bank's shares at a good price.
"We received approximately NIS 2.5 billion, which will serve to cover Israel's national debt. Bank Leumi's purchase contributes to the possibility of other investments finding their way to Israel," Sharon said.
"The privatization of the banks marks the beginning of a process of privatizations in Israel. We intend to expand the scope of privatizations in the country's economy," he added.
'More investments to come'
In his speech, Sharon attributed the improvement in Ithe sraeli economy in 2005 to the reforms instigated by the government, as well as to the political moves it has undertaken.
Ezra Merkin, who represented Cerberus-Gabriel at the event, said his company's investment is an indication of the trust foreign investors have in the local economy. Merkin stated that his firm intends to continue investing in Israel.
Finance Minister Ehud Olmert on his part pledged that the State would make an effort to avoid intervening with the firm's business.
"This is a long-term investment in the Israeli economy. Welcome to Israel's economy and business world," Olmert greeted the representatives.
