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Bethel Finance news:
Even if Aharon Fogel is appointed to succeed Ilan Ben Dov as chairman of Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), he would continue to serve in his present post as chairman of Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL). He only recently resigned as chairman of Ness Technologies Ltd.
Even if Ben Dov, who controls Partner, reaches a deal with Fogel, it is uncertain whether Fogel can take up the post at Partner, even on a part-time basis, as it is not certain that the Supervisor of Capital Markets, Insurance and Savings Prof. Oded Sarig would allow him to simultaneously serve at one of the country's largest institutional investors and one of the country's largest borrowers.
While there is no law or regulation preventing such an appointment, both the Ministry of Finance and other regulators have blocked similarly problematic dual jobs, due to possible conflicts of interest. The most recent example is the Banking Supervision Department, which ordered Irit Isaacson to give up her simultaneous directorships at Bank Hapoalim (TASE: POLI), its subsidiary Isracard Ltd., and at IDB Holding Corp. Ltd. (TASE:IDBH) unit IDB Development Corp., one of the largest borrowers in the economy. Isaacson is giving up her post at IDB.
Even if the Ministry of Finance does not actively block Fogel from serving as chairman of both a lender and borrower, such an appointment would create problems for transactions between Migdal and Partner. It is not clear whether the Ministry of Finance will take such an extreme position, or be satisfied with reservations preventing Fogel from participating in decision affecting the two companies.
Migdal is one of the economy's largest lenders, and its subsidiary, Migdal Capital Market Ltd. buys and sells securities, including those of Partner.
The Ministry of Finance was unavailable for comment.
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