Bethel Finances: Education Ministry cuts week from summer vacation

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The Ministry of Education today announced that this year's summer vacation will end a week early. Classes will begin on August 26, instead of the usual September 1.

The Ministry of Education said that the vacation days lost in summer will be made up for by extending holidays during the year, as follows: three vacation days will be added to bridge between Yom Kippur and Sukkot, with the holiday running from October 7 through October 23; the Hannukah vacation will be brought forward by one day to December 21; and the Passover vacation will also be brought forward by one day to March 28, 2012.

The Ministry of Education committee wanted to shorten the summer vacation for kindergarten by two weeks, and pay teachers or substitutes extra. Kindergarten teachers opposed the proposal, saying that it would further erode the status of their profession.

Bethel Finances: Electricity price will soar without Egyptian gas

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"The price of electricity will soar in the coming months unless gas deliveries from Egypt resume," Israel Electric Corporation (IEC) (TASE: ELEC.B22) CEO Eli Glickman told the Knesset Economic Affairs Committee today, which met to discuss the effect of the halt in deliveries of Egyptian gas on the Israeli economy at the initiative of MK Robert Tiviaev (Kadima).

"Natural gas is the best source for generating electricity, and the country must be called up on this matter," said Glickman. He added that unless Egyptian gas deliveries resume, IEC's expenses for generating electricity will reach NIS 3.5 billion in 2011.

Public Utilities Authority (Electricity) chairman Amnon Shapiro said, "The electricity tariff will rise 16% in a scenario of no Egyptian gas by the end of the year."

Merhav Group SVP Nimrod Novik told the Economics Committee that the Egyptian pipeline had been repaired, and that the Egyptian government had almost completed upgrade work on the pipeline's security infrastructure to prevent future attacks. "Our sources in Cairo expect that the gas flow will resume within days. The US partner in EMG has notified the Egyptian government that it has filed for international arbitration in Washington. The Egyptian government has asked to revise the price of gas, but we refused."

Merhav Group, owned by Yosef Maiman, is the largest Israeli partner in Egypt's East Mediterranean Gas Company (EMG).

Novik added that there has been no decision by the Egyptian government not to resume gas deliveries to Israel, but that mid-level officials prefer not to make unpopular decisions to renew deliveries without the support of their political superiors. "There is no doubt that the Egyptians fully understand the statement by President Obama that the $1 billion aid package for Egypt, plus a $1 billion write-off of Egypt's debt hinges on Egypt meeting all its commitments. Obviously, the gas agreement, which is backed by the peace treaty with Israel, is one of Egypt's commitments, and there is no doubt that they know and understand this."

Novik said that EMG's shareholders were determined to protect their investment. "The Egyptian government doesn’t want to deal with multibillion dollar claims, not just from the shareholders, but also from Israeli customers who invested in natural gas-powered facilities."

In response to the statements, Tiviaev asked for an urgent meeting to discuss a scenario of higher consumer electricity prices. "It seems odd to me that the State of Israel is relaying on ambiguous sources in Cairo. Have we reverted to the days when Cairo Radio tried to spread propaganda among Israelis? We want to know in a clear manner what is the future of the pipeline and the gas. I left with a hard feeling that the future is not at all clear and that the State of Israel should begin to act as if there is no gas now or on the horizon.

Bethel Finances: Israeli Central Bank Chief Explores IMF Bid

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Bethel Finance news:

Israeli central banker Stanley Fischer is examining a formal bid to head the International Monetary Fund, said an official familiar with his thinking, and figures he has an outside shot at the job if there is a deadlock in the voting.

Mr. Fischer, a former deputy managing director of the IMF, is a long shot. While he's widely respected among central bankers and finance ministers, his current position as Israel's central bank governor would make it tough to win the support of Arab nations and other emerging-market countries, said an Arab official who has worked with Mr. Fischer.

Mexico's central bank governor, Agustin Carstens, hopes to lock up the emerging-market bloc, while other candidates from developing countries could announce their candidacies in the coming days, including former South African finance minister Trevor Manuel. The IMF plans to announce three candidates by June 10 and select a winner by the end of the month.

The odds-on favorite, French Finance Minister Christine Lagarde, is widely supported in Europe, which has about 35% of the votes in the IMF. A simple majority is needed to win the job. She told The Wall Street Journal on Thursday she expects shortly to tour major emerging-market countries, including China and Brazil, to build support.

If neither Mr. Carstens nor Ms. Lagarde—nor any other candidate—can show strength beyond their region, the official said, Mr. Fischer figures IMF officials, who know him well, might turn to him as a compromise pick. The official said Mr. Fischer has had indications of support from nations apart from Israel.

One big handicap: Mr. Fischer is 67 years old—two years older than IMF rules allow for the initial selection of a managing director. But IMF experts have said that the board could waive or change those rules.

In any scenario, the U.S., with 17% of the vote, will play an enormous role in selecting the next managing director. The U.S. probably has enough votes to put Ms. Lagarde over the top now, but hasn't indicated it will back her—at least in part, to make the process seem fair and open. The U.S. also wants to be able to install White House economic official David Lipton in the No. 2 slot, once occupied by Mr. Fischer.

Mr. Fischer has wide range of close colleagues in the Obama administration, including Treasury Secretary Timothy Geithner. During the Asian financial crisis of 1997-1998, Mr. Geithner, then a Treasury international affairs official, worked closely with Mr. Fischer at the IMF to devise strategies to contain the economic turmoil.

But it's far from clear that the U.S. would back Mr. Fischer—and in the past it opposed his candidacy for the top job.

In 2000, Mr. Fischer, then the IMF's deputy managing director, made a run for IMF managing director and picked up substantial support from Africa and the Middle East, including from Mr. Manuel of South Africa. Mr. Fischer was born in what is now Zambia and positioned himself as an African candidate despite his U.S. citizenship. But the U.S. balked, trying to preserve the tradition of the top IMF job going to a European and the second position going to a U.S. citizen.

Eventually, Germany's Horst Kohler, who was president of the European Bank for Reconstruction and Development, got the managing director's job, and Anne Krueger, an American economist, got the No. 2 slot.

Mr. Fischer, who now also holds an Israeli passport, figures he can blunt somewhat the opposition that an Israeli candidate might engender, said the official, because he has close ties with top Palestinian leaders. They include Palestinian Prime Minister Salam Fayyad, whose career Mr. Fischer advanced when Mr. Fayyad was at the IMF.

Asian countries, however, may balk at Mr. Fischer's candidacy because of his role during the Asian financial crisis, which is remembered in the region as a time when the IMF imposed unfair requirements on bankrupt nations in exchange for rescue loans.

Still, Mr. Fischer is widely praised for helping keep the Israeli economy humming during tumultuous times there during his tenure at Israel's central bank, which started in 2005.

Bethel Finances: Lagarde Sees EU, Middle East as IMF Focus for Next Chief

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Bethel Finance news:

French Finance Minister Christine Lagarde said Europe's debt crisis and the aftermath of the Arab Spring will be priorities for the International Monetary Fund's next chief as she kept up her campaign for the post.

"Europe will be a clear focus for the next couple of years," Lagarde told BBC Radio 4 today. "I also think that what is happening in northern Africa, in the Middle East, and the major economic developments that will be needed to accompany what is happening, will probably attract the IMF's attention and possibly financing."

The IMF said in a report prepared for the Group of Eight summit this week that oil-importing nations in the Middle East and North Africa will require more than $160 billion in external funding through 2013. Lagarde, who is vying to become France's fifth IMF chief and maintain Europe's hold on the position, also told the Financial Times she would "remedy the situation" if she found developing countries underrepresented at the fund.

"I don't think it should be a European or an emerging economies candidate" for the top job, Lagarde said. "It should be a good candidate. My sense is that it should be an open, transparent and merit-based process."

While developing nations have called for an end to Europe's 65-year hold on the post, they have failed to unite behind one nominee. Mexican central bank Governor Agustin Carstens is among her rivals for the job, while the Wall Street Journal said today that Bank of Israel Governor Stanley Fischer may also pursue it.

Fischer's Plans

Asked in a Bloomberg Television interview on May 25 whether he would like the post, Fischer said he plans to stay at the helm of the Bank of Israel. He didn't say whether he'll present his candidacy for the role, which he called "terrific."

Russia indicated it still may be possible for the so-called BRICs nations to support a candidate from one of their countries.

"We don't exclude such a possibility," Deputy Foreign Minister Sergei Ryabkov told reporters at the G8 summit in Deauville, France today.

Lagarde, 55, emerged as the leading contender to replace Dominique Strauss-Kahn after his resignation last week. The 187- member IMF aims to pick his successor by end June. She is seeking meetings in China and other emerging powers as part of an effort to broaden support for her candidacy beyond Europe.

European Crisis

Lagarde argued that her experience of European structures and governments may help her in the job.

"It might actually be a benefit, it's not decisive, but it may be a benefit to know all these people, to know the intricacies of the European construction, to appreciate the political circumstances and background of each of the leaders," she said.

Julian Jessop, an economist at Capital Economics Ltd. in London, suggested that Lagarde's European credentials will be particularly important because of the region's debt crisis.

"One of the biggest problems facing the global economy over the next few years is European, which is the future of the euro zone," he said. "Being European may not be a bad thing."

G-8 leaders, who are meeting today in Deauville, France, pledged their "strong support" for the pro-democracy movements sweeping the Middle East and North Africa. The IMF proposed granting loans as part of global efforts to help countries in the region strengthen their economies after the surge in pro- democracy movements there.

Bethel Finances: Israel Chemicals boosts TASE

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The Tel Aviv Stock Exchange (TASE) rose today. The Tel Aviv 25 Index rose 1.12% to 1,237.89 points, the Tel Aviv 100 Index rose 1.34% to 1,125.77 points, and the BlueTech 50 Index rose 1.89% to 271.13 points. Turnover was NIS 2.36 billion.

The TASE rose across the board today, with the exception of the Tel Communications Index, snapping a severe four-day losing streak. The Tel Aviv 25 Index fell 4.3% for the week.

In the bond market, long-term Shahar unlinked government rose by up to 0.4% and long-term Galil CPI-linked rose by up to 0.2%. The corporate bond benchmark Tel-Bond 20 Index rose 0.28%.

In the foreign currency market, the shekel-dollar representative exchange rate fell 0.86% to NIS 3.469/$, and the shekel-euro representative exchange rate fell 0.09% to NIS 4.918/€.

In the stock market, Israel Chemicals Ltd. (TASE: ICL) rose 5.6% on the day's largest turnover of NIS 233 million, on no news.

Three Tel Aviv 25 companies published their first quarter financials today. Israel Corporation (TASE: ILCO) rose 1.9%, despite swinging to a loss. Real estate and industrial company Azrieli Group Ltd. (TASE: AZRG) rose 2.4% and food company Osem Investments Ltd. (TASE: OSEM) rose 0.8%, after both companies reported higher profits.

Real estate company Gazit-Globe Ltd. (TASE: GLOB) rose 4.8%. Also in real estate, Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) fell another 4.1% today on debt woes - company denials of any problem notwithstanding.

Banks also rose today, led by Israel Discount Bank (TASE: DSCT) with a rise of 2.3%. Bank Hapoalim (TASE: POLI) rose 1.7% and Bank Leumi (TASE: LUMI) and Mizrahi Tefahot Bank (TASE:MZTF) both rose 1.5%.

Telecom shares went against the market today. Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) fell 4%, Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) fell 2.9%, and Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) fell 0.1%.

Bethel Finances: Cabinet to approve NIS 290m plan for Jerusalem's economy

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The cabinet is due to approve at next Sunday's meeting a NIS 290 million five-year Merom plan to strengthen Jerusalem's economy. NIS 145.5 million will be allocated to strengthen the city as a tourism capital, NIS 71. 4 million will be allocated for biotech R&D, and NIS 70.5 million will be allocated for other measures.

The Ministry of Tourism will allocate an additional NIS 75 million to encourage hotel construction in Jerusalem.

The investment in biotech R&D will fund grants for start-ups, upgrading laboratories for joint use by small and medium-sized companies, grants for services companies, incentives for biotech initiatives, and funding for Bio-Jerusalem.

Funding will also be made available for public buildings, student housing, and academic projects. The cabinet will also add Jerusalem to the list of assistance areas where scholarships are given for the first year university students who discharged soldiers or national civilian service graduates.

Bethel Finances: Stanley Fischer refuses 70% pay hike

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Governor of the Bank of Israel Prof. Stanley Fischer has refused a 70% pay hike. On Sunday, the cabinet is expected to raise the monthly salary of the head of Israel's central bank from NIS 38,000 to NIS 64,000.

However, Fischer has asked not to receive the pay hike.

The salary of the Bank of Israel governor is not covered by the Bank of Israel Law. Sources in the Bank of Israel say that Fischer supports the pay hike because he feels it will help the government find a better quality successor to him when he eventually steps down.

The source told "Globes," The governor wants the government to hire the highest quality person for the next term. He wants the salary raised but thinks it won't look good if he asks for it for himself. The governor unequivocally stressed that the pay rise will not apply to him."

Bethel Finances: Greylock Israel raises $200m second fund

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Sources inform ''Globes'' that Greylock Partners has raised $200 million for its second Israel fund. The firm closed the funding in full only a few months after launching the fundraising, and without announcing an initial closing.

Greylock was unavailable for comment.

Israeli venture capital funds usually take 12-18 months to close funding for a new fund, as they make the rounds among potential investors around the world just to secure the first closing.

Greylock is one of the world's oldest venture capital funds, and has been operating in Israel since 2001 Greylock partner Moshe Mor handles Israeli investments. In 2006, he teamed up with former EMC executive Erez Ofer and former Cisco Systems executive Yoram Snir to raise a $150 million fund for investments in Israel. Greylock Israel raised a $50 million annex to the fund in 2008.

Greylock Israel has not yet had any large exits, and it suffered a massive write off on modu. Greylock Israel has invested in 20 companies, including Aeroscout Ltd., Celeno Ltd., Payoneer Ltd., and Zend Technologies Ltd. - mature companies each with tens of millions of dollars in annual turnover.

Other investments include Camero Tech Ltd., PlyMedia Ltd., Red Bend Software Ltd., WebCollage Ltd., WeBook Ltd., and Telit Communications plc (AIM:TCM)

Bethel Finances: Shekel gains more ground against dollar

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The shekel continued to gain ground against the dollar this morning in inter-bank trading following the Bank of Israel's decision on Monday to raise the interest rate for June by 25 basis points to 3.25%. The shekel dollar exchange rate was down 0.99% this morning to NIS 3.465/$.

The shekel is stable this morning against the euro with the exchange rate up 0.2% to NIS 4.9234/€.

In an interview with "Reuters," Governor of the Bank of Israel Prof. Stanley Fischer said that he is not concerned about the strengthening of the shekel, because it is not harming Israeli exports. He also said that he predicted growth of 4.5-5% in Israel in 2011.

On global foreign exchange markets, the euro was 0.1% stronger against the dollar at $41.4174/€.

After sharp falls on global stock markets and the Tel Aviv Stock Exchange (TASE) in the first part of the week, rises on Wall Street and in Asia are expected to positively influence the TASE today.

Bethel Finances: Financing costs weigh on Paz profit

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Paz Oil Company Ltd. (TASE:PZOL) reported sharply lower profit on higher revenue for the first quarter of 2011. Revenue rose 20% to NIS 4.49 billion from NIS 3.73 billion for the corresponding quarter, due to higher fuel prices.

Net profit attributable to shareholders fell 32% to NIS 100 million for the first quarter from NIS 146 million for the corresponding quarter of 2010. Paz CEO Yona Fogel attributed the drop to higher financing costs, driven by higher prices for crude oil and reduced refining margins, as well as rising inflation and interest rates.

Net financing costs were NIS 31 million for the first quarter, compared with net financing income of NIS 11 million for the corresponding quarter. The company also reported a NIS 59 million capital gain in the corresponding quarter from the sale of Haifa Basic Oils Ltd.

Sales by Paz Ashdod Refinery rose 30% to NIS 3.53 billion for the first quarter from NIS 2.71 billion for the corresponding quarter, due to higher fuel prices. The refining margin fell to $0.40 per barrel in the first quarter from $1.90 per barrel in the corresponding quarter, while the price of oil rose to $117 per barrel at the end of March from $64 per barrel a year earlier.

Adjusted net profit attributable to shareholders fell 45% to NIS 91 million for the first quarter from NIS 165 million for the corresponding quarter.

Paz said that, for the first time, rising prices for crude oil reduced demand for refined oil products in Israel: demand for diesel was 2% lower in January-April compared with the corresponding months of last year, while demand for gasoline was flat.

Paz's share price fell 0.6% by early afternoon to NIS 598.90, giving a market cap of NIS 6.11 billion.

Bethel Finances: Deutsche Bank bullish on Leviathan partners

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Deutsche Bank has initiated coverage of Leviathan partner Ratio Oil Exploration (1992) LP (TASE:RATI.L) with a "Buy" recommendation and target price of NIS 0.58. It also reiterates its "Buy" recommendations for Delek Group Ltd. (TASE: DLEKG) and its subsidiaries, Delek Energy Systems Ltd. (TASE: DEOL), Delek Drilling LP (TASE: DEDR.L), and Avner Oil and Gas LP (TASE: AVNR.L).

The target prices are NIS 1,080 for Delek Group, NIS 1,700 for Delek Energy, NIS 16.70 for Delek Drilling, and NIS 3 for Avner. The bank says that the Leviathan companies "have higher potential return if oil is discovered, but more downside risk if not."

The share prices of Delek Group and its subsidiaries reflect only the value of natural gas, and sees triple-digit upside potential if oil is found at Leviathan. Deutsche Bank cautions, however, that the likelihood is not high, based on the seismic surveys of the structure. "With the exception of Ratio, we believe the market has not significantly priced in an oil discovery. That said, we believe a failure to discover oil would drive share prices lower on sentiment, creating buying opportunities."

Deutsche Bank, however, downgraded Delek's partner in Tamar, Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) to "Hold", with a target price of NIS 0.42, because of limited upside following its share performance.

Deutsche Bank adds that disruptions in gas supplies from Egypt - Israel's only other source of natural gas - "has materially increased the pricing power of the Israeli gas partnerships, which now have the ability to raise prices that could offset at least part of the impact from the Sheshinski tax measures." The value of Israeli natural gas assets, particularly Tamar, has increased. While the bank believes that Egyptian gas will continue to flow, a significant reduction or complete cut-off of deliveries could further boost the bank's valuations of Delek Group and the other companies.

Finally, new discoveries would add to the upside potential. Deutsche Bank cites the US Geological Survey estimate of 122 trillion cubic feet of natural gas in the Levant basin, much of which is in Israel's exclusive economic zone. Ratio is due to announce the results of the 3D seismic survey of its wholly-owed Gal prospect in July, which if positive, will add to its upside potential. Delek Group owns additional licenses and Isramco is exploring the Shimshon prospect.

Oil and gas exploration shares fell in morning trading as part of the general trend on the TASE. Delek Group fell 1.5% by midday to NIS 801, Delek Energy fell 1.2% to NIS 1,151, Delek Drilling fell 1.6% to NIS 11.86, Avner fell 1.9% to NIS 2.10, Ratio fell 2.3% to NIS 0.39, and Isramco fell 2.6% to NIS 0.41.

Bethel Finances: Israel Corp. CEO: Egyptian gas will flow again

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"We believe that, at some point, Egyptian natural gas will flow again. I don’t believe that the pipeline will be closed down, because it makes dollars for the Egyptian economy. It should also be remembered that gas from Tamar will begin flowing by the end of 2012, so there is no need to hurry," Israel Corporation (TASE: ILCO) CEO Nir Gilad told "Globes", following the publication of the company's financial report for the first quarter.

Gilad said, "We've covered our gas consumption for the coming period until we'll need more gas. Our gas consumption is divided into three: Israel Chemicals Ltd. (TASE: ICL), Oil Refineries Ltd. (TASE:ORL), and the power station that we're going to build. Israel Chemicals and Oil Refineries are covered, and the first natural gas-driven power station will come online in early 2013, so it can be said that Israel Corp's gas consumption is covered for 18 months, part at normal prices, and part at spot prices."

"Globes": Although there is no connection between Israel Corp. and Ofer Shipping, do you have anything to say about the sanctions against Ofer Shipping?

Gilad: "We are sure that this is a misunderstanding that it will be sorted out soon. Sources in the US said that there is no connection with Israel Corp., and I don’t believe that any investor will withdraw its investment or sell its holding in the company because of this issue."

"We're growing, continuing our investments in Better Place LLC and in Chery Quantum Auto Company, and investing in electricity production in Israel and other countries. Israel Chemicals continues to expand its operations in Israel and overseas, and the group is developing."

Bethel Finances: Bank of Israel orders banks to raise employee provisions

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Sources inform ''Globes'' that Bank of Israel has published a circular, "Financial reporting n employee rights". The circular, part of the introduction of International Financial Reporting Standards (IFRS), is due to take effect in the financial reports for the first quarter of 2011, which the banks are about to publish. The circular covers "measuring expected benefits beyond contractual terms", and has been a bone of contention between the Bank of Israel and the banks.

The circular states that banks must review if they expect, based on experience, to pay employee severance compensation under voluntary or involuntary retirement plans that will exceed projected commitments (severance compensation of one month's pay for each year of employment).

For years, the banks paid employees severance compensation at more than double, or even triple, the legal minimum. The banks must now make a retroactive provision for these payments.

The new rules will reduce the banks' aggregate shareholders' equity by NIS 1-1.5 billion because it applies retroactively back to January 2010.

Supervisor of Banks David Zaken is determined to apply the circular over the banks' objections. A Bank of Israel source said, "The circular will regularize obligations toward employees."

Bethel Finances: BoI mulls steps to block Eliahu at Leumi

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The Bank of Israel is considering its steps after Bank Leumi (TASE: LUMI) shareholder Shlomo Eliahu's success in getting two of his nominees appointed to the bank's board of directors at yesterday's general shareholders meeting. As far as the Bank of Israel is concerned, Eliahu is trying "to gain control of Bank Leumi without a control permit", and challenging the regulator and bypassing the Banking Law (Licensing). The Bank of Israel sees the appointment of directors on behalf of shareholders who have no control permit as "effective control."

Governor of the Bank of Israel Prof. Stanley Fischer and Supervisor of Banks David Zaken are now reviewing their options. They understand that anything they do will cause an open confrontation with Eliahu, and he, in response, will not hesitate to take legal action to secure his rights. Possible measures by the Bank of Israel include requiring Eliahu to formally apply for a control permit by a designated deadline, or reduce his stake in Bank Leumi to 4.99% from the current 9.59%.

When the original so-called Marani amendment was legislated in 2004, which states that the Bank of Israel must approve a holding of more than 5% in a bank, Eliahu obtained a special exemption to keep his Bank Leumi stake and not sell the excess shares. However, the permission was subject to him not using his extra power to take control of the bank.

The Bank of Israel is examining whether the appointment of two directors on Eliahu's behalf is a breach of his permit or not. In a statement this morning, the Bank of Israel said, "The Bank of Israel… considers it appropriate to repeat and emphasize that in banking corporations in which the means of control are widely dispersed among many shareholders, it must be ensured that those holding a high share of the means of control relative to most shareholders do not have the ability to direct the activity of the banking corporation without obtaining the required permit from the Governor of the Bank of Israel."

Eliahu has not applied for a control permit to date, and any such application would require him to sell his holding in Union Bank of Israel (TASE: UNON) and the pension insurance assets of his Eliahu Insurance Company Ltd.

Bank Leumi's general shareholders meeting approved the appointment of four new directors. Eliahu nominated six candidates, two of whom were elected: Amos Sapir, a former chairman of Standard & Poor's Maalot Ltd.; and Tsipi Samet, a former supervisor of capital markets, insurance and savings at the Ministry of Finance, who was appointed as an external director.

This is the first time that the government failed to get all its nominees elected to Bank Leumi's board of directors. The appointments committee chaired by Margalit Nof, offered four nominees, two of whom were elected: Miri Katz, a former chairwoman of the Israel Securities Authority, who term as director was extended; and former Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) CEO David Avner.

The Bank of Israel now has 60 days to approve the new directors, after conducting a fit and proper review of them. It will reportedly not make trouble, and it will approve Eliahu's nominees. There is a consensus that Samet and Sapir are worthy candidates and the Bank of Israel will find no cause to disqualify them, except for the fact that Eliahu nominated them.

An immediate step by the Bank of Israel will be to speed up the legislative process to amend the Marani amendment, which the Knesset Finance Committee is currently discussing. Fischer will reportedly personally act to speed up the legislation. The Bank of Israel also said in today's statement, "The proposed amendment strikes a balance between the rights of holders of the means of control to propose candidates to serve as directors and to work towards their appointment, and the aim of preventing effective control over a banking corporation being obtained without receipt of a permit from the Governor."

The Bank of Israel initiated the new amendment, which allows a bank shareholder with a stake of at least 2.5% to propose only one nominee for the board of directors.

Eliahu opposes the proposal and is trying to block its passage. The Bank of Israel has repeatedly said that approval of the amendment is a necessary condition for the sale of the government's holding in Bank Leumi. MI Holdings (State of Israel Properties) owns 6.46% of Bank Leumi (of which 1.1% of the shares will be allotted to Bank Leumi employees), and so long as the government owns at least 5% of Bank Leumi, it will be considered the legal controlling shareholder of the bank.

Shlomo Eliahu told "Globes" in response, "The Bank of Israel should supervise the bank's stability, capital adequacy, officeholders, and other issues, but it should not run the bank. If the Bank of Israel runs Bank Leumi, who will supervise? The appointment of directors is not the Bank of Israel's job."

Eliahu added, however, "I am not a troublemaker."

"Globes": Yesterday, two directors that you nominated were elected to Bank Leumi's board. Some people see this a challenge to the Bank of Israel, which is leading an amendment, which if passed, will prevent you from nominating more than one candidate.

Eliahu: "There's no connection between what happened yesterday and the Bank of Israel. The Bank of Israel today issued a statement saying that it wants to amend the law, but we work under current law, with all due respect.

"I nominated candidates, and the shareholders elected them, not just me and the Bank of Israel. The Bank of Israel should confirm the directors-elect, or reject them with explanations. The Bank of Israel has no other way."

Some people see the appointment of two directors on your behalf as at attempt to win control, even though you lack a control permit.

"After the new directors are confirmed, they sign confidentiality agreements and loyalty to the bank, so there is no control here or loyalty to the man who nominated them. Furthermore, there is no connection between me and the worthy candidates I nominated, and I, and the man who nominated them, don’t want their loyalty. I want the bank to be run properly and legally. This is a supervised bank."

Bethel Finances: Israel biomed cos don't want Americans to head US operations

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A survey prepared by Israel Life Science Industry for "Globes" for the ILSI Biomed 2011 conference shows that most investors and senior officials of Israeli biomed companies do not believe that they must appoint an American CEO in order to penetrate the US market. According to the survey, 50% reported that there is no need for an American CEO, 20% claimed that it doesn't make a difference and 30% claimed that a company looking to succeed in the market must have an American CEO (or European CEO if the company is in Europe.) The survey was conducted for a panel that took place this week at the conference which was be moderated by Dalia Megiddo. Two Israeli directors participated in the panel: Gamida Cell CEO, Yael Margolin, and VBL CEO, Prof. Dror Harats alongside two American directors: Chiasma CEO Frederic Price and Regentis Biomaterials CEO Dr. Alastair Clemow.

According to Megiddo, "Research in 2000 showed that Israeli companies that have American directors don't succeed in building an effective infrastructure. There is a lack of cooperation between the R&D department in Israel and the marketing department in the US, where each side develops a certain style and sometimes even competes with each other. Cultural differences just exacerbate the situation and lead to a lack of trust."

Almost all of those who participated in the survey claimed that it is important that a senior member of the management team be extremely connected to American culture, but that it doesn't necessarily need to be the CEO. It would be enough to have the president, the marketing manager or the CEO of an American subsidiary serve this function. Other participants noted that it is quite common today to find Israelis who are quite involved in American life after spending years working in the US and therefore having an American CEO is not compulsory.

Some respondents noted that it would be helpful if an Israeli company hires a successful American CEO that knows the industry well. However, they believe that the chances of that happening are negligible -- on the one hand because a quality American CEO would never agree to manage an Israeli company and on the other because the cultural differences would rip the company apart. In this situation, it is preferable to appoint a successful Israeli CEO, even if he doesn't know the American market as well.

Megiddo adds that, "The American CEO is usually brought in from the outside and Israelis don't like this. The companies that succeeded with such a scenario had more than one founder, one of which relocated from Israel to the US and spent time working in the US market and in this way bridged the gap. Megiddo also notes that it is important to build integrated teams with members from both departments and to have them collaborate on projects and meet often. "An American CEO is an investment, one that costs about a million dollars a year," says Megiddo. "Therefore, he should be chosen very carefully and the relationship between him and the company should be watched carefully."

Some of the respondents suggested an alternative model in which the Israeli CEO himself relocates to the US at the beginning of the business and market development stage so that he can immerse himself well in the American market. According to all the respondents, the most sought after CEO is a "returning Israeli:" ie. an Israeli who lived many years in the US and worked in key positions in the American market and is now returning to Israel, or a new immigrant (or not so new immigrant) to Israel who held a senior position in the worldwide biomed field. The only problem is this is a very rare commodity.

Bethel Finances: FDA approves MCS thrombosis treatment

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MCS Medical Compression Systems (DBN) Ltd. (TASE:MDCL) has obtained US Food and Drug Administration (FDA) marketing approval for its ActiveCare + DT non-invasive device for treating deep vein thrombosis and preventing embolisms. The company will begin marketing the system in 2012.

MCS says that the system, a development of its flagship ActiveCare + SFT device, is the only device on the market that combines simultaneous diagnostics with treatment during preventative care by identifying disruptions in blood flow in the limb veins in real time and preventing its development. The company added that, currently, there is a 5-6% risk of developing deep vein thrombosis in patients who receive medication and/or other therapy after orthopedic surgery, but there no treatments or technologies to warn that the therapy is failing.

MCS says that the ActiveCare + DT system can more quickly identify the development of deep vein thrombosis early in post-operative care and verify the presence of blood clots. Early diagnosis should greatly reduce severe complications, such as potentially lethal pulmonary embolisms.

A large clinical trial in the US found that use of ActiveCare + SFT with the blood thinner Lovenox on patients after knee replacement surgery was effective MCS says that the ActiveCare + DT system has an advantage over medication by providing early diagnosis in patients where preventative care has failed.

MCS's share price rose 2% by midday to NIS 4.02, giving a market cap of NIS 163 million.

Bethel Finances: Tower expands collaboration with Singapore's IME

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Specialty foundry Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) (which operates under the TowerJazz brand) is expanding its collaboration with Singapore's Institute of Microelectronics (IME) on breakthrough projects in micro-electro-mechanical systems (MEMS), packaging and application-specific integrated circuits (ASICs).

IME, an institute of the Agency for Science, Technology and Research (A*STAR), seeks to promote R&D in MEMS and IC design with Tower and fabless companies in three-way partnerships. IME's collaboration with TowerJazz has developed inertial sensors, pressure sensors, and micromirrors with MEMS product companies. Potential future collaborations include through-silicon via (TSV) and advanced packaging, 3-D integrated chips, photonics and nanoelectronics.

The global market for MEMS devices is $8 billion a year, and growing. MEMS are used in consumer electronics, industrial, and medical devices.

Tower VP process engineering R&D Zmira Lavie said, "IME’s capabilities and experience as an 8-inch technology development site for MEMS and ASICs, combined with TowerJazz’s blend of business and technical competency for MEMS and IC fabrication, creates an advantage for our customers by reducing total project cost and time-to-market."

IME executive director Prof. Dim-Lee Kwong said, "By leveraging TowerJazz’s rich technology portfolio and specialty manufacturing excellence, IME has been able to help its partners maintain a development edge and competitive position in their respective fields. In addition, by utilizing existing high volume of Complementary Metal Oxide Semiconductor (CMOS) manufacturing processes, it permits us to drive down MEMS cost and increase integration with other CMOS-based technologies."

Tower's share price fell 2.5% on Nasdaq yesterday to $1.19, giving a market cap of $315 million, and fell 1.4% by midday on the TASE today to NIS 4.11.

Bethel Finances: Playtech teams with UK gaming co Gala Coral

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Online gaming solutions developer Playtech Cyprus Ltd. (AIM:PTEC) has signed a memorandum of understanding (MOU) with UK gaming company Gala Coral Ltd. to supply it with a technology platform and a broad range of products, Playtech chairman Roger Withers told the company shareholders at yesterday's general meeting.

"Whilst we don't normally comment on MoUs, we are excited by having the chance to partner with another of the UK's leading gaming operators," Withers added, "If a formal agreement is concluded, this new licensee could deliver significant revenues once it migrates onto our platform over the following 12-18 months."

Withers also said that Playtech has almost completed the conversion of over 21,000 FOBT machines to Videobet software in partnership with Global Draw, a subsidiary of Scientific Games. "This gives us the leading position in the UK market and an excellent platform for future growth," he said.

Playtech also announced that it will buy back up to 10% of its share - 24,265,448 shares - on the open market, after the board of directors decided that recent trading in shares did not reflect their underlying value.

Based on Playtech's current share price, the buyback could cost over ₤81 million. The company had $92 million in cash and cash equivalents at the end of March.

Playtech's share price has fallen 21% since the beginning of the year, and 24% over the previous 12 months.

Playtech's share price fell 1.5% in morning trading on London’s Alternative Investment Market (AIM) today to ₤3.36, giving a market cap of ₤807 million.

Bethel Finances: Israel fares well in OECD Better Life Index survey

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Israel fares reasonably well in the new Better Life Index of the level of quality of life of OECD countries. Australia ranks number one. The Index published this week ranks countries according to 11 criteria which include: environment, health, safety and income.

The report shows that people in Israel are satisfied with their lives: 72% answered that they are happy, a rate that is significantly higher than the 59% average among the OECD countries. The official report states, "In terms of employment, nearly 59% of people aged 15 to 64 in Israel have a paid job," below the average which is 65%. Also, 55% of mothers are employed after their children begin school, again below the average which is 66%.

In education, Israel is actually above average compared with the other OECD countries. According to the organization, 81% of adults aged 25 to 64 in Israel have earned the equivalent of a high-school diploma, higher than the overall average of 73%. The report states that, "As to the quality of its educational system, the average student scored 474 out of 600 in reading ability, whereas the average is 493 points."

Another interesting piece of data is that 93% of people in Israel know someone whom they feel they could rely on in a time of need, whereas the OECD average is only 91%.

Bethel Finances: OECD raises Israel 2011 growth forecast to 5.4%

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The OECD predicts in its latest Economic Outlook, released today, that Israel will achieve 5.4% GDP growth in 2011, up from 4.7% in 2010, but fall back to 4.7% in 2012, partly because of higher interest rates.

The OECD predicts that world GDP will be 4.2% in 2011 and 4.6% in 2012, and GDP growth by OECD countries will be 2.3% and 2.8%, respectively.

OECD Secretary-General Angel Gurría cautioned, "This is a delicate moment for the global economy, and the crisis is not over until our economies are creating enough jobs again. There is also some concern that if downside risks reinforce each other, their cumulative impact could weaken the recovery significantly, possibly triggering stagflation in some advanced economies."

Although the recovery is becoming self-sustained, with trade and investment gradually replacing fiscal and monetary stimulus as the principal drivers of economic growth, as well growing confidence, but risks include possible further rises in oil and commodity prices, a stronger-than-projected slowdown in China, the unsettled fiscal situation in the United States and Japan, renewed weakness in housing markets in many OECD countries, and financial vulnerabilities remain in the euro area.

Bethel Finances: Steinitz supports Christine Lagarde for IMF chief

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Minister of Finance Yuval Steinitz today announced that he supports French Finance Minister Christine Lagarde for the post of IMF managing director - unless Governor of the Bank of Israel Prof. Stanley Fischer decides to run for the job. Steinitz's remark means that he does not rule out Fischer resigning from the Bank of Israel.

Largarde formally announced her candidacy for the post earlier today.

Steinitz met Lagarde today at the sidelines of the G8 summit in Deauville, France. He also met Greek Finance Minister George Papaconstantinou to discuss Greece's debt crisis, and Norwegian Finance Minister Sigbjørn Johnsen to discuss how Norway handles its oil and gas reserves.

Bethel Finances: IAI profit soars 170% on strong revenue

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Bethel Finance news:

Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) reports strong revenue and profit growth for the first quarter of 2011. Revenue rose 11% to $855 million from $769 million for the corresponding quarter, and net profit rose 170% to $46 million from $17 million.

IAI increased sales in both military and civilian markets. The company also reported a capital gain from the sale of its 30% stake in avionics and electronic warfare systems developer Elisra Group to Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) for $24 million.

Military sales rose to $628 million for the first quarter from $582 million for the corresponding quarter and civilian sales rose to $227 million from $187 million. The proportion of military sales declined to 73% of total first quarter sales from 76% of sales in the corresponding quarter, while the proportion of civilian sales rose to 27% from 24%.

Exports rose to $680 million (80% of total sales) for the first quarter from $624 million for the corresponding quarter, while domestic sales rose to $175 million from $145 million.

IAI reported a $16 million expense in severance compensation for 80 employees this year as part of the 2006 employee early retirement program. The retiring employees are from its unprofitable civilian aircraft division (Gulfstream corporate jets).

IAI's orders backlog totaled $8.6 billion at the end of March, 85% of which is for exports. Cash flow from operations totaled $76 million for the first quarter

Bethel Finances: Public flees stock and bond funds

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Bethel Finance news:

The mutual funds industry has sustained heavy withdrawals in the past few days. Since the beginning of the week, in just three trading sessions, about NIS 1 billion has been redeemed from the traditional mutual funds. The peak was reached yesterday, with redemptions amounting to about NIS 500 million, according to data from Meitav Investment House Ltd. advisors relations manager Roni Apter.

Most of the redemptions are from company and general bonds funds, which, in the past two and a half years, have been the funds that have attracted the most money. Because of the falls in share and bond prices, particularly company bonds, these funds have sustained high levels of redemptions, amounting to some NIS 730 million, half of it yesterday.

In these past three days, the company and general bond funds have fallen by an average of 1.1%. In the case of some funds, this negative yield made the falls in their prices steeper; with others, it put them in negative territory for the first time this year.

According to Meitav, redemptions from funds investing in stocks have amounted to some NIS 180 million in the same period.

Two categories that have managed to mop up some of the money flowing out of the stocks and bond funds are money market funds (NIS 460 million) and shekel funds (NIS 60 million), particularly pure makam (treasury bills) funds.

Since the beginning of the month, over NIS 2.1 billion have been withdrawn from mutual funds. If this rate continues, withdrawals will be the highest since the worst of the global economic crisis in November 2008.

Bethel Finances: Sodastream to rebrand as green in Israel

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Sodastream International Ltd. (Nasdaq: SODA) is planning to recapture the Israeli market with a new environmentally-oriented branding, following the company's IPO and secondary offering in New York, and achieving a market cap of over $1 billion.

Sodastream, a maker of home carbonated beverage systems, says that its reusable bottles equal 2,000 disposable bottles and cans - the quantity consumed by an average family over three years.

The new brand, created by Tizug Padgo Plastic Ltd. in collaboration with Israel Union for Environmental Defense, will stress the environmental aspects of reusable bottles and environmentally friendly materials. The health aspect of the brand will focus its use of natural flavors without the use of preservatives or food coloring.

Sodastream will market the products in the green sections of retailers such as Home Center Ltd., Ace Auto Depot Ltd. (TASE:ACDP), and Traklin Electricity Center Ltd.

Sodastream Israel CEO Varda Shoham said, "The rebranding in Israel is taking place at the right time. The green agenda is gaining strength in Israel and Sodastream offers a solution to consumers seeking to keep the environment clean."

Sodastream operates in 42 countries, including the US, Australia, Germany, Denmark, Sweden, and Switzerland, and has two factories in Israel. It has four million customers worldwide.

Sodastream's share price closed at $57.86 yesterday, giving a market cap of $1.15 billion.

Bethel Finances: Ofer Bros: We sold tanker to Dubai company

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Israeli sources told "Globes" that the Ministry of Defense and Ministry of Foreign Affairs believe that the US charges against Ofer Brothers Group are based on a misunderstanding. The sources said that Israeli officials are in contact with the US State Department to clarify the issue and to get the Ofer Brothers' Singapore company, Tanker Pacific Ltd., off the list of companies suspected of violating the sanctions against Iran.

Sources inform ''Globes'' that Ministry of Defense officials contacted representatives of Ofer Brothers in Israel for clarifications. The company officials said that the ship was sold to a Dubai-registered company called Crystal Shipping, which did not, and does not, appear on any blacklist of companies that the US administration bans trading with.

Yesterday, the State Department placed Tanker Pacific on a watch list for selling an oil tanker, Raffles Park, to Republic Iran Shipping Lines (IRISL) for $8.65 million in October 2010. The ship was renamed "Emma". Six other companies were also put on the watch list.

The State Department said, "These are the first sanctions imposed by the United States for refined-petroleum related activities under Iran Sanctions Act since it was amended by Comprehensive Iran Sanctions, Accountability, and Divestment Act. By imposing these sanctions, the Secretary sends a stern and clear message to companies around the world: those who continue to irresponsibly support Iran's energy sector and help facilitate Iran’s efforts to evade US sanctions will face serious consequences."

Concerning the case of Ofer Brothers, the State Department said, "We believe that Tanker Pacific and Ofer Brothers Group failed to exercise due diligence and did not heed publicly available and easily obtainable information that would have indicated that they were dealing with IRISL. The Secretary will hold companies accountable, as required by the Iran Sanctions Act, when they know or “should have known” they were providing sanctionable goods or services to Iran. With the imposition of today’s sanctions, Tanker Pacific and Ofer Brothers Group are barred from securing financing from the Export-Import Bank of the United States, from obtaining loans over $10 million from US financial institutions, and from receiving US export licenses."

Ofer Brothers said in response, "We have never sold a tanker to Iran. The authorized agencies of the State of Israel will confirm our statement in full."

Bethel Finances: Azrieli grows revenue and profit

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Azrieli Group Ltd. (TASE: AZRG), Israel's largest holding company, reported revenue and profit growth for the first quarter of 2011. Revenue rose 17% to NIS 1.87 billion from NIS 1.58 billion for the corresponding quarter, including an 11% increase in rental income to NIS 295.6 million from NIS 265.4 million. The company distributed a NIS 240 million dividend in April.

Net profit rose 18% to NIS 181.1 million for the first quarter from NIS 153.6 million for the corresponding quarter.

Azrieli owns malls in Israel and the US through Commercial Centers and Malls Ltd. Net operating income (NOI) of the company's real estate operations rose 11% to NIS 236 million for the first quarter from NIS 213 million for the corresponding quarter, while funds from operations (FFO) rose 26% to NIS 168 million from NIS 133 million. The company owns 12 malls with 240,000 square meters of rental space rented to 1,500 tenants, and 13 office buildings with 400,000 square meters of rental space rented to 930 tenants. The malls have a 100% occupancy rate and the office properties have a near 100% occupancy rate.

Azrieli Group also owns 4.79% of Bank Leumi (TASE: LUMI) and 20% of its credit card subsidiary Leumi Card Ltd. Azrieli Group also has extensive industrial holdings through Granite Hacarmel Investments Ltd. (TASE: GRNT), including fuel company Sonol Israel Ltd., Supergas Ltd. and paint maker Tambour Ltd. (TASE:TMBU), and desalination plant owner Global Environmental Solutions Ltd. (GES)

Azrieli Group's share price rose 2.2% in morning trading on the TASE to NIS 94.86, giving a market cap of NIS 11.3 billion.

Bethel Finances: Zim sinks Israel Corp to loss

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Israel Corporation (TASE: ILCO) swung to a net loss for the first quarter of 2011 as losses at Zim Integrated Shipping Services Ltd. worsened, which could not be offset by strong results by Israel Chemicals Ltd. (TASE: ICL).

Israel Corp.'s revenue rose 14.4% to $2.58 billion for the first quarter from $2.25 billion for the corresponding quarter of 2010. However, the company posted a net loss of $53 million for the first quarter compared with a net profit for the corresponding quarter. The company attributed much of the loss to a 10-fold increase in net financing expenses to $164 million for the first quarter from $16 million for the corresponding quarter.

Cash flow from operations fell to $142 million for the first quarter from $228 million for the corresponding quarter.

Among Israel Corp's holdings, Israel Chemicals Ltd. (TASE: ICL) contributed $147 million to Israel Corp's first quarter results, up from $126 million. IC Power, including Inkia Energy Inc. contributed $11 million, down from $15 million for the corresponding quarter.

But Zim Integrated Shipping Services Ltd. caused Israel Corp a $111 million first quarter loss, up from $82 million for the corresponding quarter. Zim's revenue rose to $912 million for the first quarter from $745 million for the corresponding quarter, which the company attributes to an increase in shipping volumes and higher rates.

Oil Refineries Ltd. (TASE:ORL) contributed a $6 million loss, up from $1 million for the corresponding quarter; Better Place LLC contributed a $14 million first quarter loss, up from $9 million for the corresponding quarter, and Israel Corp's Chinese joint car making venture Chery Quantum Auto Company's rose 12-fold to $12 million for the first quarter from $2 million for the corresponding quarter. Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) loss narrowed to $3 million for the first quarter from $13 million for the corresponding quarter.

Israel Corp's share price was unchanged in morning trading at NIS 1,310, giving a market cap of NIS 27.8 billion. The share price is down 13.7% since the beginning of the year.

Bethel Finances: Pentagon approves funding of four Iron Dome systems

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Bethel Finance news:

The US Department of Defense, the Pentagon, last night announced plans to purchase four Iron Dome missile defense systems to help Israel defend the region around Gaza from short-range rockets.

Head of the Pentagon's Missile Defense Agency Lt. Gen. Patrick O'Reilly said, "In our budget, we have a proposal to assist with procurement of four more batteries."

Procurement of the batteries will cost the US Department of Defense $200 million. The Pentagon has responded to a request by US President Barack Obama to buy the systems for Israel.

O'Reilly added, "The system has proven efficient in wartime. This is one which the US benefits from understanding and studying exactly how they've been successful with the Iron Dome system. US troops could face similar threats from a combat zone."

Israel is currently deploying two Iron Dome systems in the south protecting Beersheva and Ashkelon. Their positions may be changed as required.

In April, the system successfully intercepted short range rockets fired from Gaza for the first time.

Each Iron Dome systems costs $50 million, and each interceptor costs $40,000.

Isra-Mart srl : Stanley Fischer refuses 70% pay hike

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Governor of the Bank of Israel Prof. Stanley Fischer has refused a 70% pay hike. On Sunday, the cabinet is expected to raise the monthly salary of the head of Israel's central bank from NIS 38,000 to NIS 64,000.

However, Fischer has asked not to receive the pay hike.

The salary of the Bank of Israel governor is not covered by the Bank of Israel Law. Sources in the Bank of Israel say that Fischer supports the pay hike because he feels it will help the government find a better quality successor to him when he eventually steps down.

The source told "Globes," The governor wants the government to hire the highest quality person for the next term. He wants the salary raised but thinks it won't look good if he asks for it for himself. The governor unequivocally stressed that the pay rise will not apply to him."

Bethel Finances: Noble Energy raises Israeli gas reserves forecast

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Noble Energy Inc. (NYSE: NBL) president and CEO David Stover has delivered good news for Israel's natural gas and oil sector. He told a UBS conference in the US, "It's possible that over the next few years gas reserves in the Israel region will rise to 35-45 trillion cubic feet (TCF) compared with the current level of 25 trillion cubic feet that we know about."

45 TCF would be nearly triple the size of known 16 TCF reserves in the Leviathan gas field, the largest gas discovery worldwide over the past decade, and of which Noble holds 39.6%. Noble also holds a major stake in the Tamar gas field which has 8.4 TCF and smaller discoveries at Dalit, Mary B and Noa.

Stover added, "The fact that we have found the two largest discoveries in the world over the past decade in the past few years, has opened up for us a region of new and large activities. In the coming few years, we will continue developing Tamar and Leviathan and at the same time continue our exploration activities in the region.

He continued, "We plan completing development of the Tamar project by the end of 2012 and beginning to supply gas to consumers in 2013. I expect that by the time we will begin providing gas from Tamar we will already have started working on the next stage of developing this field to meet the growing domestic demand of recent years."

Regarding Leviathan Stover said, "Drilling the first Leviathan well has been completed and we abandoned drilling of the second well due to difficulties, but we will very soon begin redrilling the structure."

He said that when work has finished on the second Leviathan well, the company would remain in the region and undertake additional exploration in 2012.

Bethel Finances: Baligam sues Groupon for copyright infringement

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Bethel Finance news:

Israeli coupon company Baligam Ltd. today filed a NIS 550,000 lawsuit with the Tel Aviv District Court against Groupon Inc. for copyright and trademark infringement. In January, Groupon acquired Israeli social shopping site Grouper, which now operates as Groupon Israel.

Baligam claims that Groupon Israel grossly and repeatedly infringed its copyright in order to benefit from Baligam's reputation and unfairly interfering in its business by infringing on its trademark.

Baligam and Groupon Israel are leading local social shopping sites, and each had a turnover of tens of millions of shekels in 2010, when the daily deals market in Israel emerged.

Baligam claims that, in December, it discovered that when searching for the name of its website in English in Google, one of the first results was for Groupon under Baligam's name. Clicking on the link directed the user to an announcement that Groupon was about to launch operations in Israel and invited users to send their e-mail addresses to receive daily deals.

Baligam claims that it contacted Groupon in late December, before Groupon officially entered Israel through its acquisition of Grouper, and demanded that it cease and desist from using Baligam's name to advertise its services.

Baligam claims that the warning was ignored, and that the incident recurred in January. Baligam sent a letter demanding that it stop publishing announcements proximate to the name of Baligam's website, but which go to Groupon Israel's website. Baligam claims that Groupon sent back a letter denying the actions attributed to it, or that the actions were done with its knowledge, and that such actions would stop.

In the statement of claim, Baligam says the declarations were one thing, but reality was otherwise. In March, the same case recurred in the same way, and Baligam sent another warning letter, in which it asked Groupon to make an offer for compensation for copyright infringement. Baligam says that no response was received.

Baligam asked the court for an injunction against Groupon to immediately desist from all use of Baligam's trademark and for compensation for illegal enrichment at Baligam's expense and for unfair intervention in its business.

Bethel Finances: Russians wanted IDF attaché as double agent

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A day after the gag order was lifted over Russia's expulsion of Israel's military attaché, IDF Colonel Vadim Leiderman, on allegations of espionage, new reports claim that Russian intelligence tried to recruit him as a double agent. The Russians reportedly tried to pressure Leiderman with evidence that he collected classified intelligence. Leiderman refused to cooperate and was therefore expelled.

Israeli sources say that the Russian misinterpreted Leiderman's conduct and that he spoke the truth about his relations with Russian intelligence agencies.

Hebrew daily "Ma'ariv" reports that Russian President Dmitry Medvedev and Prime Minister Vladimir Putin personally approved Col. Leiderman's arrest and expulsion.

The BBC reports that Leiderman's diplomatic immunity is what saved him in Russia, because it prevented Russia from initiating legal proceedings against him. A senior Russian official told Leiderman to get out with his family within 48 hours.

The background for Leiderman's expulsion is not clear, but he was involved in promoting Israeli-Russian defense deals. Israel and Russia are due to shortly sign a military cooperation agreement as a platform for the pending deals. An agreement has been delayed because of US pressure on Israel not to sell advanced unmanned aerial vehicles (UAV) developed by Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) to Russia, which angered the Russians.

Bethel Finances: Goldman Sachs warns of regional impact on Israel's economy

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"Ongoing political developments across the Middle East and North Africa are relevant for Israel and need to be monitored closely. Also, Iran's nuclear program poses additional longer-term risks," cautions Goldman Sachs in a new review on the shekel. However, the investment bank remains "constructive" about the shekel, as it shows steady appreciation on the back of widening demand and interest rate differentials, a more hawkish shift in monetary policy, and a solid external position, particularly over the next six months.

Goldman Sachs revised its forecasts for the shekel's exchange rates against the dollar and euro. It predicts that the shekel-dollar exchange rate will be NIS 3.50/$ (down from NIS 3.52/$) in three months, NIS 3.37/$ (up from NIS 3.35/$) in six months, and NIS 3.30/$ (up from NIS 3.25/$) in twelve months.

Goldman Sachs predicts that the Bank of Israel will raise the interest rate from the current 3% to 3.25% at the end of June, 4.25% at the end of 2011, and 5.25% in 2012.

It predicts that the shekel-euro exchange rate will be NIS 5.08/€ in three months, NIS 5.06/€ in six months, and NIS 5.12/€ in twelve months.

Bethel Finances: Shekel regains ground against dollar

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The shekel strengthened against the dollar and euro in early inter-bank trading today. By the afternoon, the shekel-dollar exchange rate was down 1.13% to NIS 3.492/$ and the shekel-euro exchange rate was down 0.83% to NIS 4.98/€.

"I don’t see the curve on the dollar reaching NIS 3.60/$ or a maximum of NIS 3.65/$ in the coming months, and forget about a higher exchange rate," said Excellence Nessuah chief economist Shlomo Maoz at the "Globes"-BDO Ziv Haft Finance and Capital Market conference yesterday.

Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.529/$, up 0.26% on the day before, and set the shekel-euro representative exchange rate at NIS 5.022/€, up 0.38%.

In international markets, the dollar is traded at $1.427/€, and it strengthened to ¥81.64/$ against the Japanese yen.

Maoz added that Governor of the Bank of Israel Prof. Stanley Fischer's decision to raise the interest rate by 50 basis points two months ago was "rash". Maoz expects inflation expectations to ease, because of moderately rising salaries, the jump in Israeli productivity, and falling prices for commodities. He said, "I see the interest rate at 4.25% by the end of the year. In 12 months, I see the US growing and its interest rate rising."

Bethel Finances: Long odds on Fischer becoming next IMF head

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UK bookmakers William Hill plc gives Governor of the Bank of Israel Prof. Stanley Fischer 16-1 odds of being appointed as the next managing director of the IMF to replace the disgraced Dominique Strauss-Kahn, who resigned today from his holding cell in New York's Riker's Island jail.

William Hill's favorite for the post is former Turkish Finance Minister Kemal Dervis, with 5-2 odds, followed by former IMF director Montek Singh Ahluwatta of India with 5-1 odds, Bundesbank President Axel Weber, with 7-1 odds, and former British Prime Minister Gordon Brown, with 8-1 odds.

Another outsider on the list is French Finance Minister Christine Lagarde, with 14-1 odds. If appointed she would be the first woman to hold the post. She is tipped as a favorite by "The New York Times."

Since the IMF and the World Bank were founded in 1946, an American has traditionally headed the World Bank and a European has headed the IMF. European leaders want to keep the post in their hands, especially now with the debt crisis in Europe and the IMF's key role in solving it. However, they face challenges from emerging counties.

Bethel Finances: Google to pay NIS 17m for modu's patents

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Google Inc. (Nasdaq: GOOG) has bought the patents of failed Israel modular mobile phone start-up modu for NIS 17 million, modu receiver Adv. Hanit Nov notified the Tel Aviv District Court today.

modu, founded by Dov Moran, raised $125 million before it went into liquidation when debts and losses overwhelmed it. The company's employees petitioned the court to liquidate it. The sale of the more than 100 patents, obtained during the company's three years in operation, is part of this process.

modu owes its creditors, including banks, tens of millions of shekels, and its cumulative losses were NIS 450 million.

Bethel Finances: Reed Elsevier in talks to buy dbMotion for $300m

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Bethel Finance news:

Information solutions company Reed Elsevier plc (NYSE; LSE: ELN) is in talks to buy Israel healthcare software company dbMotion for $250-300 million.

Headquartered in Hod Hasharon north of Tel Aviv and with a development center in Omer near Beersheva, dbMotion develops healthcare software platforms and systems for medical organizations. The company's solutions collect and store patient information and thus facilitate improved medical care.

The company's chairman is Benny Levin, and since its establishment in 2004, $50 million has been raised from Vertex, Gemini Israel Funds, Pitango and the University of Pittsburgh Medical Center.

dbMotion was initially set up in southern Israel in 1996 as ISI Ness and is a spinoff from Ness Technologies Inc. (Nasdaq:NSTC;TASE:NSTC). Ness remains a shareholder in the company.

Bethel Finances: Former nat'l security advisor does not see conflict ahead

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Bethel Finance news:

"I want to sound the all-clear. There won't be an Israeli attack on Iran, and there is little chance of war with Syria or Lebanon. I believe that this will be a year of calm," said former national security advisor Giora Eiland at the "Globes"-BDO Ziv Haft Finance and Capital Market Conference today.

"In Lebanon, the chance of war with Hizbullah is low," Eiland said. "In Gaza, there are good reasons for the Palestinians to keep the quiet, so I therefore believe that this will be a quiet year in terms of security. Will the UN declare a Palestinian state? Yes. Will this declaration be translated into concrete steps that Israel will have to carry out - no. This is only a declaration."

Commenting on the Arab Spring, Eiland said, "If you look at the broad swathe from Libya to Yemen, the effects of the events in the Middle East are indirect, but they could have a strong impact on the US, and therefore on Israel. The worrying thing is a small country, ostensibly one that is of very little importance to Israel, Bahrain. It is very important on the Saudi Arabian side of the Persian Gulf and I think that it is the key."

Bethel Finances: Hapoalim VP: I hope markets don’t overreact to Fischer

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Bank Hapoalim (TASE: POLI) VP corporate division Shimon Gal hopes that the Bank of Israel will succeed in cooling the real estate market, and not severely damage it, but he admits that the risk is growing because of soaring home prices.

"The 14% rise in home prices over the past year supports the fact that we're at a rising risk level in the real estate market," Gal told the "Globes"-BDO Ziv Haft Finance and Capital Market Conference today. "On the other hand, the fact that there's an imbalance between supply and demand supports rising prices. We're at a historic low point with housing inventory of just 10,000 apartments. Is there a bubble? That's irrelevant. What is relevant is the risk level in the market, which is steadily rising."

Commenting on the Bank of Israel's efforts to rein in the mortgage market, Gal said, "I hope that these measures will help and that there won't be an overreaction. We always compare the market with the US market, even though the two markets' fundamentals are not at all alike. Israelis' ability to repay is much higher than Americans' ability to repay on the eve of the crisis. Nonetheless, as cautious bankers, we see the risk level in the market rising, which is why we routinely review the risk of real estate projects and take scenarios of falling prices into account."

Gal added, "Bank Hapoalim sees the changes in the real estate market the same way as the Bank of Israel. The monetary measures to cool the real estate market are insufficient. I think that, in the end, the Israeli government will have to take measures to boost supply and to balance it with demand, for example, be releasing more land for construction."

As for competition between banks, Gal said, "Competition in the credit market exists at both the banking level and at the non-banking credit level. We constantly compete on all dimensions, both on the price of transactions, on their structure, and on the collateral; in other words, at every level. Competition comes from analysis of the risk structure, which results in proper pricing. This allows us to properly build credit transactions for customers. In cases where the pricing of a deal does not conform to its risk, we reject the deal."

Bethel Finances: Yaakov Sheinin: Current growth unsustainable

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"We’re a small country and that bears a price. We're headed for a slowdown and our joy is in vain. GDP growth of 4.7% is unsustainable," said Economic Models CEO Yaakov Sheinin at the "Globes"-BDO Ziv Haft Finance and Capital Market Conference today.

Sheinin added, "I see the interest rate at 4.25% in 12 months. I foresee US growth and a higher interest rate." Sheinin also warned against a 4% interest rate gap with the US.

"I do not think that another 25 or 50-basis point hike in the interest rate will affect housing prices. The housing supply must be increased, and land for 50,000 housing units must be allocated every year. Only that will stop the rise in home prices and bring down inflation to 3%. If we continue raising the interest rate, we get a massive capital inflow because investors will get 4%, which will strengthen the shekel and weaken exports."

Bethel Finances: Israel world's top investor in R&D

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Israel is the world's top investor in R&D as a proportion of GDP in 2011, according to the World Competitiveness Index of 59 countries by Switzerland's IMD Business School. Israel is ranked 17th in competitiveness overall, the same as in 2010.

Israel was also ranked first by IMD in the functioning of central banks.

Hong Kong and the US tied for first place in global competitiveness this year, taking over from Singapore, which fell to third place.

The Federation of Israeli Chambers of Commerce represents IMD in Israel. Chambers of Commerce president Uriel Lynn said, "The Israeli economy continues to demonstrate robustness and stability compared with the world's leading economies. The survey puts Israel among the top 20 countries, economically speaking, despite the challenges facing Israel over the coming year, such as reducing the public sector and spending, cutting bureaucracy, and the burden on the business sector, investment in infrastructure in the periphery, including in education, and boosting exports."

Israel is ranked 54th out of the 59 countries in participation in the labor force, the same as in 2010. Israel's ranking for cost of living fell to 49th place from 47th place, and its ranking for persons dependent on the government was the penultimate 58th place.

Israel's ranking for technology infrastructure rose to 4th place in 2011 from 5th place in 2010; science infrastructure rose to 4th place from 6th place; but its ranking for basic infrastructure (roads, railways, energy sources, etc.) was unchanged in 47th place. Israel's ranking on environmental legislation fell to 21st place this year from 19th place last year, and its ranking on education fell to 14th place from 13th place.

Bethel Finances: Gov't allocates NIS 500m more state guarantees for exporters

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The Knesset Finance Committee today approved a NIS 500 million expansion of export credit for ASHRA - Israel Export Insurance Corporation Ltd. The Ministry of Finance asked the committee's approval for the measure as part of the easements for exporters. Deputy Accountant General Eran Heimar believes that the supplemental credit guarantees will help exporters during a time of market uncertainty.

Heimar told the Finance Committee, "The guarantees are given for exports, and are not merely financial; they have political aspects. This is normal practice by most countries."

The supplement is in response to the erosion of export profitability, due to the shekel's appreciation, and instability in target markets. Exporters believe that the credit insurance supplement will reduce their insurance premiums for long-term export contracts.

Bethel Finances: Gov't sets up national cybernetic taskforce

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Bethel Finance news:

The government today established a national cybernetic taskforce to encourage and develop cybernetics and to turn Israel into a global center of knowledge, in cooperation with academia, industry, and the defense establishment. The taskforce's main responsibility will be to expand Israel's ability to defend vital infrastructure networks against cybernetic attacks perpetrated by foreign countries and terrorist organizations. Prime Minister Benjamin Netanyahu unveiled the taskforce at a press conference today.

The Prime Minister Office's said that Israeli electronic networks were under permanent threat, and cited an attack that shut down the Bank of Israel's website in 2008, and attacks by hackers in June 2010, after the Turkish flotilla incident, against many sites, including that of the Tel Aviv-Jaffa Municipality.

Netanyahu instructed the allocation of a special budget to implement a five-year plan to place Israel at the global forefront in this field. The plan includes investments in basic R&D, the establishment of a super computer-based center at an Israeli university, the establishment of academic centers of excellence, accelerated activity to bring researchers and academics back to Israel, significantly increasing the number of cybernetics students, and upgrading university research infrastructures.

The plan will also encourage the business sector, especially high tech, to develop technologies to give Israel a significant advantage in the field. The government will remove export impediments on cybernetic developments and the security establishment will increase assistance for the development of cybernetic technologies by private industry.

National Research and Development Council director Prof. Yitzhak Ben-Yisrael headed the team that recommended establishment of the cybernetic task force. He told "Globes", "We're engaged on the defensive side. We cannot discuss specific cyber attacks, not because there weren’t any, but because I don’t see the point. But I can assure you that we'll meet any cyber attack. UK Prime Minister David Cameron told me that they were cutting back everything, except for cyber defense, in which they were investing heavily. We will also invest hundreds of millions of shekels."

Bethel Finances: Applied Materials Israel R&D center to hire 100

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Applied Materials Israel Ltd. will hire 100 more employees for its R&D Center, after already hiring 60 employees so far this year. The new jobs include 40 positions for students.

The company is seeking industrial, management, and electronics engineers, buyers, developers, and operations managers. The new jobs will boost its Israeli workforce to 1,000.

Applied Materials Israel's restructuring over the past two years included 300 layoffs and salary cuts, as the company struggled to deal with the fallout from the global economic crisis.

Applied Material Inc. (Nasdaq: AMAT) has a market cap of $18.9 billion. The company develops equipment, services and software for the semiconductor, flat panel display, and photovoltaic solar panels industries.

Bethel Finances: Harrah's casinos buys Playtika for $85m

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Harrah's casinos has acquired Israeli social games developer Playtika Ltd. at a company value of $80-90 million, only a year after the company was founded.

Harrah's will initially acquire 51% of Playtika, which has developed a number of games played on Facebook, including slots and dice. Facebook bans gambling with real money; winners of games only receive points.

Playtika was founded by Robert Antokol and Uri Shahak. It has 15 employees in Israel and 30 employees at its development facility in Ukraine. Playtika claims to have nine million Facebook users.

Harrah's is a unit of Caesars Entertainment Corporation.

Bethel Finances: Teva takes over Japanese generics co Taiyo

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Bethel Finance news:

Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) announced today that it has signed a definitive agreement to acquire 57% of the shares in privately-held Taiyo Pharmaceutical Industry Co. Ltd. for $460 million in cash paid to private shareholders. Teva will also extend an offer to purchase all remaining outstanding shares of Taiyo. This transaction gives Taiyo an enterprise value of $1.3 billion. The transaction is expected to be accretive to GAAP earnings within four quarters after closing.

Taiyo is the third largest generic pharmaceutical company in Japan with sales of $530 million in 2010. According to Teva's announcement, the company has one of the most comprehensive generic product portfolios in the Japanese market with over 550 generic drugs in a variety of therapeutic areas and dosage forms. "Taiyo has strong presence in all major distribution channels in Japan, particularly in hospitals due to its wide range of injectable product offerings. Taiyo’s marketing efforts are supported by a strong back-end with top tier production capabilities in a wide range of technologies (including sterile manufacturing) in two manufacturing facilities, as well as a strong R&D team and local regulatory expertise," the announcement said.

Teva president and CEO Shlomo Yanai said, “This acquisition will enable Teva to deliver on our strategic objective of becoming a leading player in the fast-growing Japanese generics market. In fact, we now expect to reach our 2015 target of $1 billion in sales in Japan ahead of schedule. Taiyo’s strong market reach, cutting-edge production facilities, and impressively large product portfolio, combined with Teva’s scale and capabilities as the world’s largest generics company, will enable us to offer a much wider range of high quality, affordable generics to a much larger segment of the Japanese market.

“We have great respect for Taiyo’s legacy and its experienced, talented, and dedicated team and look forward to welcoming them into the Teva family.”

Japan is the second largest pharmaceutical market in the world, valued at $96 billion in 2010 with a relatively low rate of generic penetration of 23%. The Japanese government has expressed its intention to increase generic penetration to 30% by 2012.

Just two weeks ago, Teva announced the acquisition of US ethical drugs company Cephalon for $6.8 billion in cash, the third largest acquisition Teva has undertaken, after Barr in 2008 and Ivax in 2006, and its largest ever acquisition of an ethical drugs company.

Teva said that the Taiyo transaction would be funded through a combination of cash on hand and bank debt, and that it was expected to be completed by the end of the third quarter.

The acquisition was flagged two weeks ago by Japanese financial newspaper "Nikkei", which, hours after the Cephalon acquisition was announced, reported that Teva would buy Taiyo for 40 billion yen (about $495 million).

Teva shares closed at $49.67 in New York on Friday, giving the company a market cap of $44.36 billion.

Bethel Finances: BiolineRX launches targeted cancer therapy project

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BiolineRX Ltd. (TASE:BLRX) has launched a targeted cancer therapy project of its BL-7030 innovative RNA receptor molecule.

In contrast to chemotherapies, which are not targeted at specific tumor cells, and can have severe side-effects, targeted therapies focus solely on tumor cells by blocking specific aspects of the target molecules responsible for the tumors. Targeted cancer therapy is more effective and has fewer side effects, in part because it avoids harming normal cells.

BL-7030 was developed by Prof. Alexander Levitsky and Dr. Alexei Shir of the Hebrew University of Jerusalem. BiolineRX bought the rights to the drug from Algen Biopharmaceuticals Inc.

BiolineRX CEO Dr. Kinneret Savitsky said, "BL-7030 is our third project launched since the beginning of 2011. We now have 13 projects. BL-7030 has great potential as a targeted cancer therapy. We are also making progress on our other projects, which are in preclinical and clinical stages for a variety of indications, including diseases of the central nervous system, cancer, infectious diseases, heart disease, and autoimmune diseases. We are also reviewing projects suited to our business model."

BiolineRX's share price rose 3.6% in morning trading to NIS 1.95, giving a market cap of NIS 235 million.

Bethel Finances: CureTech reports success in Phase II lymphoma trial

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CureTech Ltd. - a portfolio company of Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) and Clal Biotechnology Industries Ltd. (TASE: CBI) - today announced preliminary successful results of its Phase II clinical trial of CT-011 stem cell treatment of Diffuse Large B Cell Lymphoma. The trial achieved it primary endpoint of improved progression-free survival, and its secondary endpoint of overall survival.

The trial included 72 patients with aggressive lymphoma at 30 centers in the US, Asia, South America and Israel. 70% of the patients had no progression in the disease at the end of the follow-up period, compared with 47% in the historical control. 84% of patients were alive at the end of the follow-up period, compared with 62% in the historical control.

The final results are due in the third quarter, and will be presented at international scientific meetings.

CureTech CEO Dr. Michael Schickler said, "We are very pleased to have achieved this major milestone in the clinical development of CT-011. "Following the final results, CureTech will be ready to commence Phase III regulatory studies for the high unmet need in this severe indication."

Dr. Jacob Rowe, director of the Department of Hematology, Shaare Zedek Medical Center in Jerusalem said, "Diffuse Large B Cell Lymphoma “DLBCL is an aggressive type of non-Hodgkin's Lymphoma, affecting about 40% of all these patients. I am very encouraged by the results of this trial and am certain that if these results will be confirmed in future controlled Phase III studies, CT-011, a truly novel anti cancer therapy will improve the lives of many lymphoma patients."

Teva acquired 33% of CureTech in 2006, following the Phase I trial of CT-011, and it has an option to increase the stake. Teva said that the success of the Phase II trial encourages it to continue investing in Israeli science.

Teva Innovative Ventures head Dr. Aharon Schwartz said, “When we expanded our collaboration with CureTech in 2008, we did so with the intention of building on CT-011’s success up to that point, and we are incredibly pleased with the Phase II data announced today. Our collaboration with CureTech is just one of many oncology investments and alliances that we have made over the last several years in an effort to build out our portfolio of specialty products within niche therapeutic areas like oncology."

More than 400 patients have participated in seven phase II and Phase I/II studies with CT-011 for different cancers, including colon cancer, multiple myeloma, acute leukemia, and pancreatic cancer. CureTech has submitted a protocol to the US Food and Drug Administration (FDA) for a Phase II trial for metastatic melanoma, a severe solid tumor indication with very few treatment options.

Clal Biotech, the life sciences arm of Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH), owns 37% of CureTech.

Bethel Finances: CureTech reports success in Phase II lymphoma trial

www.bethelfinance.com

CureTech Ltd. - a portfolio company of Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) and Clal Biotechnology Industries Ltd. (TASE: CBI) - today announced preliminary successful results of its Phase II clinical trial of CT-011 stem cell treatment of Diffuse Large B Cell Lymphoma. The trial achieved it primary endpoint of improved progression-free survival, and its secondary endpoint of overall survival.

The trial included 72 patients with aggressive lymphoma at 30 centers in the US, Asia, South America and Israel. 70% of the patients had no progression in the disease at the end of the follow-up period, compared with 47% in the historical control. 84% of patients were alive at the end of the follow-up period, compared with 62% in the historical control.

The final results are due in the third quarter, and will be presented at international scientific meetings.

CureTech CEO Dr. Michael Schickler said, "We are very pleased to have achieved this major milestone in the clinical development of CT-011. "Following the final results, CureTech will be ready to commence Phase III regulatory studies for the high unmet need in this severe indication."

Dr. Jacob Rowe, director of the Department of Hematology, Shaare Zedek Medical Center in Jerusalem said, "Diffuse Large B Cell Lymphoma “DLBCL is an aggressive type of non-Hodgkin's Lymphoma, affecting about 40% of all these patients. I am very encouraged by the results of this trial and am certain that if these results will be confirmed in future controlled Phase III studies, CT-011, a truly novel anti cancer therapy will improve the lives of many lymphoma patients."

Teva acquired 33% of CureTech in 2006, following the Phase I trial of CT-011, and it has an option to increase the stake. Teva said that the success of the Phase II trial encourages it to continue investing in Israeli science.

Teva Innovative Ventures head Dr. Aharon Schwartz said, “When we expanded our collaboration with CureTech in 2008, we did so with the intention of building on CT-011’s success up to that point, and we are incredibly pleased with the Phase II data announced today. Our collaboration with CureTech is just one of many oncology investments and alliances that we have made over the last several years in an effort to build out our portfolio of specialty products within niche therapeutic areas like oncology."

More than 400 patients have participated in seven phase II and Phase I/II studies with CT-011 for different cancers, including colon cancer, multiple myeloma, acute leukemia, and pancreatic cancer. CureTech has submitted a protocol to the US Food and Drug Administration (FDA) for a Phase II trial for metastatic melanoma, a severe solid tumor indication with very few treatment options.

Clal Biotech, the life sciences arm of Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH), owns 37% of CureTech.

Bethel Finances: 43% of Israeli biomed cos generate revenue

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Israel has 700 biomed companies: 401 medical devices companies, 130 biotechnology companies, 76 drug development companies, and 53 medical computerization companies, reports , according to Israel Life Sciences Industry (ILSI) ahead of its 10th annual conference, ILSI-Biomed 2011.

16% of the life sciences companies (110 companies) are early-stage start-ups, 11% (74 companies) are seed-stage start-ups, and 21% (146 companies) are conducting preclinical or clinical trials of their products.

43% of Israel's biomed companies generate profits, no small achievement for a fairly young and small industry. 214 companies were founded 2001, and the rest are less than a decade old.

"8% of the revenue-generating companies were founded in the past five years," said ILSI chairwoman Ruth Alon, a managing partner at Pitango Venture Capital.

Israel's life sciences industry grew by 12% in 2001-05, and has subsequently been stable, with 40-45 new companies a year. The last three years have been weak years for the industry, due to the global financial crisis, and 200 companies ceased operations.

169 companies focus on cardiovascular treatments, 57 are developing oncology therapies, and 44% are developing therapies for disorders of the central nervous system and brain.

Israel continues to stand out in the number of life sciences patents on both an absolute and per capita basis. Israel is in first place worldwide in medical devices patents per capita and fourth place in absolute terms. It is in second place in all biopharmaceuticals patents per capita and eighth place in absolute terms. Israel is also in first place worldwide for patents in the life sciences as a proportion of total patents awarded in the country.

Bethel Finances: 43% of Israeli biomed cos generate revenue

www.bethelfinance.com

Israel has 700 biomed companies: 401 medical devices companies, 130 biotechnology companies, 76 drug development companies, and 53 medical computerization companies, reports , according to Israel Life Sciences Industry (ILSI) ahead of its 10th annual conference, ILSI-Biomed 2011.

16% of the life sciences companies (110 companies) are early-stage start-ups, 11% (74 companies) are seed-stage start-ups, and 21% (146 companies) are conducting preclinical or clinical trials of their products.

43% of Israel's biomed companies generate profits, no small achievement for a fairly young and small industry. 214 companies were founded 2001, and the rest are less than a decade old.

"8% of the revenue-generating companies were founded in the past five years," said ILSI chairwoman Ruth Alon, a managing partner at Pitango Venture Capital.

Israel's life sciences industry grew by 12% in 2001-05, and has subsequently been stable, with 40-45 new companies a year. The last three years have been weak years for the industry, due to the global financial crisis, and 200 companies ceased operations.

169 companies focus on cardiovascular treatments, 57 are developing oncology therapies, and 44% are developing therapies for disorders of the central nervous system and brain.

Israel continues to stand out in the number of life sciences patents on both an absolute and per capita basis. Israel is in first place worldwide in medical devices patents per capita and fourth place in absolute terms. It is in second place in all biopharmaceuticals patents per capita and eighth place in absolute terms. Israel is also in first place worldwide for patents in the life sciences as a proportion of total patents awarded in the country.

Bethel Finances: 20 Israeli start-ups to meet US new media cos

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A delegation of 20 Israeli start-ups is in New York to meet US new media and digital media companies. The start-ups include AttracTV Ltd., BeeTV Ltd., FanGager Ltd., Fanzilla Ltd., LiveU Ltd., Orca Interactive Ltd., PlyMedia Inc., and Qlipso Ltd.

The Israeli companies will meet HBO, MTV, CBS, and Time Inc., among others.

Israeli economic attaché in New York Yair Shiran said, "New York is the world capital of new media, and Israeli solutions are interesting and innovative. The initiative began with one company, but in view of the quality of companies and their products, it was expanded to many of the world media giants."

The Foreign Trade Administration at the Ministry of Industry, Trade and Labor said that the meeting could lead to business contracts in the near future between Israeli companies and US media companies.