Nochi Dankner
Photo: Motti Kimchi
Court approves Ben-Moshe, Elsztain's ownership of IDB
Tel Aviv District Court determines Eduardo Elsztain, Moti Ben-Moshe will be able to implement their financial plans for highly indebted conglomerate
Argentinian businessman Eduardo Elsztain and his Israeli
partner Moti Ben-Moshe won ownership of IDB Holding Corp on Tuesday after an Israeli court officially approved their control.
The decision puts an end to a high-profile battle over who will head IDB, which through its pyramidal structure controls several major companies in Israel.
Ben-Moshe has in the past said he would provide the judge with any information required, while IDB's outgoing controlling shareholder, Nochi Dankner, promised to keep fighting.
Lost Bid
Golan Hazani, Calcalist
Trustees demand all money used to support losing bid's group be returned to company, otherwise they will file personal claims
Dankner was present at the court.
IDB expanded rapidly over the past decade under Dankner, whose rescue plan for the highly indebted conglomerate was rejected by creditors, but has been hit hard by slowing economic growth and increased competition in its markets.
It also suffered losses on some poor investments, such as a major land deal in Las Vegas sealed just before the US real estate market crashed and a couple of offshore gas drilling operations that came up dry.
IDB, whose list of units includes Cellcom, Israel's biggest mobile phone operator, and leading supermarket chain Super-Sol, has been selling off stakes in other assets, like Given Imaging, MA Industries and Credit Suisse, to raise cash.
Elsztain is chairman and chief executive of IRSA, Argentina's biggest real estate company. He also serves as chairman of Cresud, a major agriculture producer.
He initially supported Dankner during the lengthy debt restructuring process, but in July backed out of the partnership. On December 9, he and Ben-Moshe won support from 75% of the votes of bondholders and bank creditors to take over.
Their proposal included a cash injection of NIS 650 million into IDB Development and a NIS 300 million payment, along with the allocation of 46.7% of IDB Development, to creditors.
Ben-Moshe has said the funds for IDB would come from units of his German-based Extra Group - primarily from its energy and telecoms companies.
