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Photo: Michael Kramer
Arcadi Gaydamak  Photo: Michael Kramer
 
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Lev Leviev. Surprise bid  Photo: Sivan Farag
 

 

Gaydamak wins tender for Bikur Holim Hospital

Africa Israel submits last-minute bid for hospital tender, loses to long-standing contestant

Ofer Petersburg
Published: 07.04.07, 09:57 / Israel Money

Israeli-Russian businessman Arcady Gaydamak has won the tender for the Bikur Holim Hospital in Jerusalem.

 

Over the last few months, Gaydamak has been competing over the purchase of the hospital in what has been a well-documented race.

  

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His offer was the highest, almost ensuring that the deal was his, providing him his entry ticket to the Jerusalem municipal elections. However, he was not expecting his former partner Lev Leviev to submit a bid at the very last minute trying to snatch the deal from under his feet.

 

Leviev's people submitted an offer through Africa Israel which is under his control on Sunday evening. His bid, for NIS 114.3 million ($27.3 million) was not as high as Gaydamak's NIS 134 million ($32 million) offer. On Monday night, they improved the offer to match Gaydamak's.

 

However, according to a letter sent by the hospital's receiver to Gaydamak's agent, Leviev's offer was not better than Gaydamak's.

 

"No other offer submitted within the timeframe determined by the court was better or higher than the offer submitted by Gaydamak. Therefore, and according to the court's decision we will start negotiation procedures with your client," the letter said. 

 

Africa Israel is building luxury apartments near the Bikur Holim Hospital. Leviev stressed that he would operate the hospital for five years before turning it into a real estate business. Gaydamak has reiterated that he did not plan to dismiss any of the hospital's employees and the hospital would continue functioning in its current capacity.

 

Bikur Holim has been under liquidation over the last several years after accumulating NIS 200 million ($47.8 million) in debt. Due to the value of real estate in Jerusalem the option of buying the building and continue operating it as a hospital was considered unattractive.

 

Danny Adino Ababa contributed to the report

 

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