Realized company policy goals. Migdal logo
Bear Stearns acquires half of Migdal
Migdal posted a net profit of NIS 534 million (about USD 127 million) in 2004
Bear Stearns Asset Management Inc. completed the acquisition of 50 percent of Tel Aviv-based Migdal Capital Markets, the investment and asset management division of Migdal Insurance and Financial Holdings Ltd., for about USD 12.5 million.
Bear Stearns (NYSE:BSC) is the sixth largest investment banking company in the U.S., and is valued at an estimated USD 9 billion.
Up until three years ago Bear Stearns owned a third of Jerusalem Economic Corp., but it has not had any noteworthy activity in Israel since then.
'A unique partnership'
Migdal CEO Izzy Cohen said the deal realizes two of the companies main strategic policy decisions regarding the strengthening of the company’s financial services department and bringing in top-notch foreign investors as strategic partners to Israel.
“We are very proud to enter a partnership with Bear Stearns,” he said. “This unique partnership will transform Migdal Capital Markets into the leading investment house in the finance asset management field in Israel.”
Richard Marin, CEO of Bear Stearns Asset Management said, “We are excited by the growth potential of the Israeli asset management market and are confident in the further development and stability of the Israeli capital markets.”
“In entering these markets, it is important for us to have a well respected and capable partner. We look forward to a long and successful relationship with Migdal,” he said.
Italian insurance giant Assicurazioni Generali S.p.A. Holds a 63.8 percent equity stake in the Migdal, which posted a net profit of NIS 534 million (about USD 127 million) in 2004.
