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IDB Holding Corp. Ltd. (TASE:IDBH) unit Koor Industries Ltd. (TASE:KOR) posted a net loss of NIS 1.63 billion loss on its 2.31% stake in Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ), quadruple the loss of NIS 359.4 million for the corresponding quarter of 2010. Koor posted a NIS 1.92 billion net loss for the second quarter for the same reason.
During the third quarter, Koor sold Credit Suisse shares at a loss of NIS 378 million. It also reported a fair value loss of NIS 900 million on the holding.
Koor still owns 27.8 million Credit Suisse shares, which are currently worth NIS 2.4 billion. The company said that it plans to continue exploiting buy and sell opportunities for the shares, depending on market conditions.
Credit Suisse's share is currently traded at CHF 21.40 in Zurich and $23.42 in New York, after falling 3.2% yesterday. Moody's Rating Services downgraded the bank's bonds after it published a dismal financial report for the third quarter.
Since the end of the third quarter, Koor has completed the sale of Makhteshim Agan Industries Ltd. to China National Chemical Corporation (ChemChina). Koor received $1.1 billion, including $168 million for 7% of Makhteshim and $960 million in a non-recourse loan secured by its remaining 40% stake in the company. It will report a net gain of NIS 582-674 million on the sale in its financial report for the fourth quarter. Koor also sold its stake in the HSBC New York headquarters to sister company Property and Building Ltd. (TASE: PTBL) for $138 million in cash, net of the debt on the building. The sales boosted Koor's cash balance to NIS 5 billion.
Koor said that its board approved a NIS 250 million bond buyback.
The company will convene a general shareholders meeting to approve the appointment of Lior Hannes as chairman, replacing Ami Erel.
Koor's share price fell 2% by midday to NIS 41.39, giving a market cap of NIS 2 billion.
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