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The current war, thankfully just of words, between Argentina and the UK over the Falklands will hit ships that are registered in Gibraltar and fly the Rock’s flag.
The Confederación Argentina de Trabajadores del Transporte announced on Monday its members would take immediate steps to boycott British registered vessels docking at the nation’s ports. This is the union’s response to the posture of London with regards to Las Malvinas as Argentina chooses to call them.
ENFLAMED
In an enflamed statement the president of the union Omar Viviani declared: “From that date we have resolved to boycott any ship with the English flag…or registered in any of the flags of convenience that the British pirates use (Bermuda, Cayman Islands, Gibraltar, Panama, Malta etc).”
Whilst Bermuda and the Cayman Islands are British Overseas Territories, I am confused right now as to what Gibraltar’s status is, but certainly all three are under the British Crown. However as far as I am aware Panama has never been British: I think it started out life under Spain and whilst Malta was a British possession it achieved independence in 1964 and became a republic ten years later. So what these two nations will make of the action by the CATT union is anybody’s guess.
The confederation, which has around 30 member unions, believes its action will significantly affect ships flying the British and associated flags and its members are expected to refuse to load or unload cargoes or man tugs or pilot vessels guiding them in to ports in Argentina.
All of this sent me scrabbling through my email files as I was sure I received a press release from the Europa Trust Company in early January extolling the advantages of flying the Gibraltar flag in those troubled waters. Indeed I did and it reads: “A few days before Christmas 2011, Brazil, Argentina, Paraguay and Uruguay decided to close their ports to vessels flying the Falkland flag. Naturally, this led to ambassadors and other diplomats being hastily summoned to explain. A former head of the Royal Navy also went so far as to call for a nuclear submarine to be sent to the region.
“Events such as these emphasise the importance of choosing the right flag for your vessel or that of your client.
“The advantages of registering a yacht or ship in Gibraltar are many. British registration is recognised as one of the most popular means of safeguarding a marine investment.
“Any foreign national, through a Gibraltar company, can own and register a vessel on the British Register of Shipping. Gibraltar is a British port of registry where vessels can enjoy British registration without being liable for payment of VAT.
“Benefits also derive from Gibraltar's status as part of the European Community, such as the freedom to transport cargoes under the cabotage system. The Gibraltar Ship Register is fully recognised as an EU Member States' Register.”
BLACKING
Which is fine except the Argentine union is now blacking all vessels flying the British ensign or indeed that of such countries as Gibraltar. However the Europa Trust also points out that vessels registered in Gibraltar fly the Red Ensign defaced with the armorial bearings of Gibraltar and as such, are entitled to Royal Navy protection.
The Ministry of Defence recently dispatched the Royal Navy’s state-of-the-art destroyer HMS Dauntless to the Falklands. So it will be reassuring to ships and indeed yachts flying the Gibraltar flag to know she will escort them wherever they wish to go. Which of course Dauntless won’t but then Gibraltar has long been used to the MoD letting them down.
Tuesday, February 28, 2012
Bethel Finance: Boat owner moves high court for compensation
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Even as the legal battle over compensation between dependants of the two fishermen shot dead by Italian marines and the ship owners is going on, the owner of the ill-fated fishing boat, St Anthony, also moved the high court on Monday, demanding Rs 72.6 lakh as damages.
Two fishermen, Valentine Jalastine and Ajeesh Pink, were shot allegedly by marines aboard Italian cargo ship Enrica Lexie off Kollam coast on February 15. The boat owner, Freddy J, survived the hail of bullets from the ship, but his boat was thoroughly damaged.
The marines and the ship crew have been maintaining that the attack on the unarmed fishing boat was in response to a suspected piracy attack.
Freddy, who had been a fisherman for more than a decade, is seeking compensation for the damage the boat suffered. Until the ship owner furnishes enough security to settle the claim, the ship, MV Enrica Lexie, should be detained along with its engines, gear, furniture and registration papers, the petition states.
In addition to the ship owner, Freddy has named the two marines, Massimilano Latorre and Salvatore Girone of Italian Navy, and captain of the ship Umberto Vitelli as being responsible for his loss .
The owner of the ship and the officials named in the petition are responsible for the "wanton illegal acts" and are legally bound to put the petitioner back in the position that he was in prior to the incident, the suit filed at the high court states.
When the dependants of the dead fishermen approached the court, the ship owner was asked to furnish bank guarantees of Rs 25 lakh for each of the victims to facilitate the court to order compensation at a later stage if the action of the marines was found to be unlawful.
However, the dependants moved a division bench of the court against the single bench order to furnish bank guarantees of Rs 25 lakh each, claiming that the guarantees furnished are too low.
Even as the legal battle over compensation between dependants of the two fishermen shot dead by Italian marines and the ship owners is going on, the owner of the ill-fated fishing boat, St Anthony, also moved the high court on Monday, demanding Rs 72.6 lakh as damages.
Two fishermen, Valentine Jalastine and Ajeesh Pink, were shot allegedly by marines aboard Italian cargo ship Enrica Lexie off Kollam coast on February 15. The boat owner, Freddy J, survived the hail of bullets from the ship, but his boat was thoroughly damaged.
The marines and the ship crew have been maintaining that the attack on the unarmed fishing boat was in response to a suspected piracy attack.
Freddy, who had been a fisherman for more than a decade, is seeking compensation for the damage the boat suffered. Until the ship owner furnishes enough security to settle the claim, the ship, MV Enrica Lexie, should be detained along with its engines, gear, furniture and registration papers, the petition states.
In addition to the ship owner, Freddy has named the two marines, Massimilano Latorre and Salvatore Girone of Italian Navy, and captain of the ship Umberto Vitelli as being responsible for his loss .
The owner of the ship and the officials named in the petition are responsible for the "wanton illegal acts" and are legally bound to put the petitioner back in the position that he was in prior to the incident, the suit filed at the high court states.
When the dependants of the dead fishermen approached the court, the ship owner was asked to furnish bank guarantees of Rs 25 lakh for each of the victims to facilitate the court to order compensation at a later stage if the action of the marines was found to be unlawful.
However, the dependants moved a division bench of the court against the single bench order to furnish bank guarantees of Rs 25 lakh each, claiming that the guarantees furnished are too low.
Bethel Finance: Boat fee free-for-all in Maryland
www.bethelfinance.com
We report this week on a Maryland Department of Natural Resources proposal to increase what it costs to register a boat in Maryland. It's the marine equivalent of getting it an up-to-date license plate, and right now it costs only a dollar a month to keep a boat's registration current, with a $24-for-two-years fee, unchanged since 1983.
The heights DNR now wants to take fees to are eye-popping, frankly. Beginning this fall, DNR wants a graduated fee structure, with pleasure boats 16 feet or shorter paying a $25 fee; $75 charged to boats between 16 feet and 32 feet; $125 for boats up to 45 feet; $250 for stopping short of the 65-foot mark; and $350 for vessels longer than 65 feet.
Come October 2014, all those rates would double, so that no boater would pay less than $50, and the biggest boats would carry a $700 registration charge.
So the costs would double from their present level, at a minimum, and the biggest boats would be charged 29 times as much.
DNR says the need for more revenue is great, in part because the federally-funded Army Corps of Engineers is soon turning over dredging responsibility for many waterways to the state.
DNR sees a need for $41 million in boating projects -- dredging, docks and so on -- and expects this fee change to raise $15 million.
But we just can't wrap our head around the huge disparity in the cost of boating making this change would create with respect to Maryland's neighboring states.
We looked it up: Virginia charges between $27 and $45 for a three-year sticker, based on boat size. Your boat has to be more than 40 feet long to be charged the most. In Delaware, there's also a size-based ladder, in which short boats pay $10 a year and boats longer than 65 feet pay the most, $60 a year. In Pennsylvania, a two-year sticker costs between $26 and $52.
If Pennsylvania, Virginia and Delaware can budget for their waterways' care without charging boaters hundreds of dollars to register, why can't Maryland manage to do the same?
It clearly makes sense to charge bigger boats a higher fee, since they require deeper channels and sturdier ramps, docks and piers. So Maryland should adopt a ladder of fees that makes the big boats pay the most. And if the Army Corps is trying to get out of the dredging business, our Congressional delegation should protest. But there's no common-sense precedent for charging pleasure boaters the sky-high fees DNR is proposing.
We report this week on a Maryland Department of Natural Resources proposal to increase what it costs to register a boat in Maryland. It's the marine equivalent of getting it an up-to-date license plate, and right now it costs only a dollar a month to keep a boat's registration current, with a $24-for-two-years fee, unchanged since 1983.
The heights DNR now wants to take fees to are eye-popping, frankly. Beginning this fall, DNR wants a graduated fee structure, with pleasure boats 16 feet or shorter paying a $25 fee; $75 charged to boats between 16 feet and 32 feet; $125 for boats up to 45 feet; $250 for stopping short of the 65-foot mark; and $350 for vessels longer than 65 feet.
Come October 2014, all those rates would double, so that no boater would pay less than $50, and the biggest boats would carry a $700 registration charge.
So the costs would double from their present level, at a minimum, and the biggest boats would be charged 29 times as much.
DNR says the need for more revenue is great, in part because the federally-funded Army Corps of Engineers is soon turning over dredging responsibility for many waterways to the state.
DNR sees a need for $41 million in boating projects -- dredging, docks and so on -- and expects this fee change to raise $15 million.
But we just can't wrap our head around the huge disparity in the cost of boating making this change would create with respect to Maryland's neighboring states.
We looked it up: Virginia charges between $27 and $45 for a three-year sticker, based on boat size. Your boat has to be more than 40 feet long to be charged the most. In Delaware, there's also a size-based ladder, in which short boats pay $10 a year and boats longer than 65 feet pay the most, $60 a year. In Pennsylvania, a two-year sticker costs between $26 and $52.
If Pennsylvania, Virginia and Delaware can budget for their waterways' care without charging boaters hundreds of dollars to register, why can't Maryland manage to do the same?
It clearly makes sense to charge bigger boats a higher fee, since they require deeper channels and sturdier ramps, docks and piers. So Maryland should adopt a ladder of fees that makes the big boats pay the most. And if the Army Corps is trying to get out of the dredging business, our Congressional delegation should protest. But there's no common-sense precedent for charging pleasure boaters the sky-high fees DNR is proposing.
Bethel Finance:Netanyahu postpones vote on flagship real estate reform
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Sources inform ''Globes'' that Prime Minister Benjamin Netanyahu has postponed the Knesset plenum vote on one of his flagship pieces of legislation, reform of the planning and building commissions, or the so-called "balcony reform". The Knesset will hold the second and third readings on the bill in the next session, after several MKs asked for more time to study the amendments and put forward their reservations on the legislation.
Netanyahu decided to halt the discussion of the bill by the joint committee of Knesset Economics Affairs Committee and Internal Affairs and Environment Committee. The joint committee has been discussing the reform for two years. Committee chairman MK Amnon Cohen (Shas) postponed a vote on the reform, after environmental and social organizations, and several MKs protested against some of the changes made in the bill. A new vote will apparently be held after Purim in March, which means that the Knesset plenum will not vote on it as originally scheduled on March 21, the last day of the winter session.
"The Israel Union for Environmental Defense, the Society for the Protection of Nature in Israel, and the Association for Social Justice petitioned the High Court of Justice for an urgent motion to order the joint committee to explain why it will not prevent voting on the 660-page bill before distributing it to the MKs and the public, so they can note their reservations" according with Mr. Peres Sailam from Bethel Finance Ltd.
Sources inform ''Globes'' that Prime Minister Benjamin Netanyahu has postponed the Knesset plenum vote on one of his flagship pieces of legislation, reform of the planning and building commissions, or the so-called "balcony reform". The Knesset will hold the second and third readings on the bill in the next session, after several MKs asked for more time to study the amendments and put forward their reservations on the legislation.
Netanyahu decided to halt the discussion of the bill by the joint committee of Knesset Economics Affairs Committee and Internal Affairs and Environment Committee. The joint committee has been discussing the reform for two years. Committee chairman MK Amnon Cohen (Shas) postponed a vote on the reform, after environmental and social organizations, and several MKs protested against some of the changes made in the bill. A new vote will apparently be held after Purim in March, which means that the Knesset plenum will not vote on it as originally scheduled on March 21, the last day of the winter session.
"The Israel Union for Environmental Defense, the Society for the Protection of Nature in Israel, and the Association for Social Justice petitioned the High Court of Justice for an urgent motion to order the joint committee to explain why it will not prevent voting on the 660-page bill before distributing it to the MKs and the public, so they can note their reservations" according with Mr. Peres Sailam from Bethel Finance Ltd.
Bethel Finance: Israeli VC funds raised $796m in 2011
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Israeli venture capital funds raised $796 million in 2011, IVC Research Center KPMG Israel Somekh Chaikin reported, after raising nothing in 2010, and just $256 million in 2009, which was 76% less than in 2008.
The seven funds that raised capital in 2011 are considered “micro funds.” These funds, with less than $30 million under management, invest small sums and generally focus on early stage candidates. Micro funds raised a total of $87 million in 2011, nearly 11 % of total capital raised last year.
Of the 14 venture capital funds to raise capital in 2011, eight are managed by newcomers in Israeli venture capital, or are organizations raising their first venture capital fund. Six of the micro funds were raised by new players.
Also new was Orbimed Israel, the first biomed fund raised as part of the Israeli government's plan to encourage life science investments in Israel. Within the program, the government agreed to invest $50 million in the fund, against investments by other LPs. While OrbiMed Advisors - the US investor that initiated the fund - had invested in Israel before, its establishment of an office and its first Israel-dedicated fund represent a major escalation in OrbiMed's Israeli activity.
KPMG Somekh Chaikin’s Technology Group partner Ofer Sela said "Globally, and also in Israel, the venture capital industry is shrinking in terms of number of entities raising new funds. Limited partners investing in venture capital firms are more selective in their investments and prefer investing in the most prominent VCs. The rest of the industry is re-inventing itself and trying to come up with an investment model that will attract limited partners with a lower burden of management fees and overhead costs and a less binding capital commitment for the limited partners.”
Historically, the growth of Israel’s venture capital industry has been through six cycles based on fund raising vintage years that started in 1992 and peaked in 2000, when more than $2.8 billion was raised. The sixth and current cycle started in 2011, and with the previous three cycles (since 2000), Israeli venture capital funds have attracted $10.7 billion, nearly 73 % of the $14.7 billion that was exclusively allocated to investments in Israeli high technology by Israeli venture capital funds between 1992 and 2011.
IVC CEO Koby Simana said, “The ability of Israeli venture capital funds to raise follow-on funds in the current cycle running through 2012 and 2013 will have a strong impact on overall performance and the future of Israel's high-tech sector, especially startups."
He added, “More than 20 funds are currently in the process of raising capital, many of them by veteran venture capitalists who are raising continuing funds. Underway, too, is capital raising by a number of new players, mostly micro funds which are likely to be successful in light of the recent micro and angel fund trend. Overall, we forecast that $800 million will be raised in 2012 by Israeli VC funds for investment in Israeli high-tech companies, maintaining the same level as in 2011."
According to IVC estimates, capital available for investment by Israeli venture capital funds at the beginning of 2012 was slightly under $1.66 billion. Of this amount less than $300 million is earmarked for first investments. The remainder is reserved for follow-on investments.
Mr. Cedric Marmet from Bethel Finance Ltd said, “Over the last few years, the Israeli high-tech industry has become more global in terms of investments with significant capital being attracted from non-Israeli venture capital firms. Record high investments in Israeli companies in 2011 indicate that foreign investors are finding Israel attractive, a trend we expect to continue.”
According to the latest IVC-KPMG survey, in 2011 Israeli companies raised $2.14 billion, 25% of which came from Israeli venture capital funds. The remainder came from other Israeli and foreign investors. Considering the needs of the industry, and the fact that the capital available to local venture capital funds should stretch over the next four years, the gap between supply and demand is clear the Israeli venture capital industry is about a billion dollars short.
Israeli venture capital funds raised $796 million in 2011, IVC Research Center KPMG Israel Somekh Chaikin reported, after raising nothing in 2010, and just $256 million in 2009, which was 76% less than in 2008.
The seven funds that raised capital in 2011 are considered “micro funds.” These funds, with less than $30 million under management, invest small sums and generally focus on early stage candidates. Micro funds raised a total of $87 million in 2011, nearly 11 % of total capital raised last year.
Of the 14 venture capital funds to raise capital in 2011, eight are managed by newcomers in Israeli venture capital, or are organizations raising their first venture capital fund. Six of the micro funds were raised by new players.
Also new was Orbimed Israel, the first biomed fund raised as part of the Israeli government's plan to encourage life science investments in Israel. Within the program, the government agreed to invest $50 million in the fund, against investments by other LPs. While OrbiMed Advisors - the US investor that initiated the fund - had invested in Israel before, its establishment of an office and its first Israel-dedicated fund represent a major escalation in OrbiMed's Israeli activity.
KPMG Somekh Chaikin’s Technology Group partner Ofer Sela said "Globally, and also in Israel, the venture capital industry is shrinking in terms of number of entities raising new funds. Limited partners investing in venture capital firms are more selective in their investments and prefer investing in the most prominent VCs. The rest of the industry is re-inventing itself and trying to come up with an investment model that will attract limited partners with a lower burden of management fees and overhead costs and a less binding capital commitment for the limited partners.”
Historically, the growth of Israel’s venture capital industry has been through six cycles based on fund raising vintage years that started in 1992 and peaked in 2000, when more than $2.8 billion was raised. The sixth and current cycle started in 2011, and with the previous three cycles (since 2000), Israeli venture capital funds have attracted $10.7 billion, nearly 73 % of the $14.7 billion that was exclusively allocated to investments in Israeli high technology by Israeli venture capital funds between 1992 and 2011.
IVC CEO Koby Simana said, “The ability of Israeli venture capital funds to raise follow-on funds in the current cycle running through 2012 and 2013 will have a strong impact on overall performance and the future of Israel's high-tech sector, especially startups."
He added, “More than 20 funds are currently in the process of raising capital, many of them by veteran venture capitalists who are raising continuing funds. Underway, too, is capital raising by a number of new players, mostly micro funds which are likely to be successful in light of the recent micro and angel fund trend. Overall, we forecast that $800 million will be raised in 2012 by Israeli VC funds for investment in Israeli high-tech companies, maintaining the same level as in 2011."
According to IVC estimates, capital available for investment by Israeli venture capital funds at the beginning of 2012 was slightly under $1.66 billion. Of this amount less than $300 million is earmarked for first investments. The remainder is reserved for follow-on investments.
Mr. Cedric Marmet from Bethel Finance Ltd said, “Over the last few years, the Israeli high-tech industry has become more global in terms of investments with significant capital being attracted from non-Israeli venture capital firms. Record high investments in Israeli companies in 2011 indicate that foreign investors are finding Israel attractive, a trend we expect to continue.”
According to the latest IVC-KPMG survey, in 2011 Israeli companies raised $2.14 billion, 25% of which came from Israeli venture capital funds. The remainder came from other Israeli and foreign investors. Considering the needs of the industry, and the fact that the capital available to local venture capital funds should stretch over the next four years, the gap between supply and demand is clear the Israeli venture capital industry is about a billion dollars short.
Bethel Finance:Egypt resumes gas deliveries to Israel
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Egypt's East Mediterranean Gas Co. (EMG) today resumed natural gas deliveries to Israel, Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL), which owns 12.5% of the company, announced today.
Mr. Peres Sailam from Bethel Finance Ltd said that gas deliveries were interrupted on February 5, due to an alleged terror attack along the Egyptian gas pipeline, owned and operated by GASCO, the Egyptian gas transport company."
EMG's gas deliveries to Israel have been repeatedly interrupted due to attacks on gas pipelines in Sinai, since the fall of Mubarak government in Egypt in February 2011.
Ampal's share price rose 5.3% by mid-afternoon on the TASE today to NIS 1.09, after rising 1.7% on Nasdaq yesterday to $0.30, giving a market cap of $16.8 million.
Egypt's East Mediterranean Gas Co. (EMG) today resumed natural gas deliveries to Israel, Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL), which owns 12.5% of the company, announced today.
Mr. Peres Sailam from Bethel Finance Ltd said that gas deliveries were interrupted on February 5, due to an alleged terror attack along the Egyptian gas pipeline, owned and operated by GASCO, the Egyptian gas transport company."
EMG's gas deliveries to Israel have been repeatedly interrupted due to attacks on gas pipelines in Sinai, since the fall of Mubarak government in Egypt in February 2011.
Ampal's share price rose 5.3% by mid-afternoon on the TASE today to NIS 1.09, after rising 1.7% on Nasdaq yesterday to $0.30, giving a market cap of $16.8 million.
Bethel Finance: Bidders unhappy with unclear IEC telco venture policy
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Bidders in the Israel Electric Corporation (IEC) (TASE: ELEC.B22) fiber optic venture were bitterly disappointed by the tender committee's responses to their requests for clarifications. The responses were delivered on Friday, and under the tender timetable, the bidders have two weeks to submit binding bids and a financing structure from a bank.
The bidders' queries focused on the problematic condition of Israel's telecommunications market, and the lack of a clear policy needed for formulating a business plan for the IEC venture.
Most of the problems are related to the Ministry of Communications' responsibilities, sending the ball back to Minister of Communications Moshe Kahlon's court. He will apparently have to return to Israel to devote time to Israel's future communications market instead of its welfare problems.
The tenders committee and the Ministry of Communications have not been working together, with the result that the ministry has no idea about the venture's problems and how they are connected to ministry policy. Specifically, the bidders want to know whether or not the government will set price controls on infrastructures owned by Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ).
If there will be a price regime on the infrastructure, this will make it more difficult for the IEC venture to get off the ground. Some of the bidders say the matter is irrelevant, while others say that price control on HOT Telecommunication Systems Ltd. (TASE: HOT) and Bezeq's infrastructures will enable the IEC venture to rely on them in areas where it is difficult to reach customers.
These bidders attach great importance to the measures that Kahlon will implement, and whether he will allow mobile carriers Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) and Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) to own small stakes in the IEC venture. In other words, there must be a commitment by the two carriers to use the new infrastructure, otherwise it will have no customers. Both Partner and Cellcom say that without price controls, they will not participate in the venture, in which case it will never be established, because it needs Bezeq and HOT's infrastructures to complete the deployment of fiber optic lines in areas that are too costly to reach.
The tenders committee agreed to amend clauses relating to the venture's deployment, such as interim deployments, and it agreed to lower the costs of IEC employees who work for the venture. But in general, its responses are very problematic as they stand now, and it is doubtful that the bidders will participate in the tended under its current terms.
The bidders believe that there is no alternative but to postpone the tender by several months, because that is how long it will take to secure financing from the banks. This is irrespective of discussions on other important issues.
The banks are unenthusiastic about financing the IEC venture under the current terms, and they have to carry out a feasibility study of it.
Kahlon declined to respond, saying only that the matter was under review.
Bidders in the Israel Electric Corporation (IEC) (TASE: ELEC.B22) fiber optic venture were bitterly disappointed by the tender committee's responses to their requests for clarifications. The responses were delivered on Friday, and under the tender timetable, the bidders have two weeks to submit binding bids and a financing structure from a bank.
The bidders' queries focused on the problematic condition of Israel's telecommunications market, and the lack of a clear policy needed for formulating a business plan for the IEC venture.
Most of the problems are related to the Ministry of Communications' responsibilities, sending the ball back to Minister of Communications Moshe Kahlon's court. He will apparently have to return to Israel to devote time to Israel's future communications market instead of its welfare problems.
The tenders committee and the Ministry of Communications have not been working together, with the result that the ministry has no idea about the venture's problems and how they are connected to ministry policy. Specifically, the bidders want to know whether or not the government will set price controls on infrastructures owned by Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ).
If there will be a price regime on the infrastructure, this will make it more difficult for the IEC venture to get off the ground. Some of the bidders say the matter is irrelevant, while others say that price control on HOT Telecommunication Systems Ltd. (TASE: HOT) and Bezeq's infrastructures will enable the IEC venture to rely on them in areas where it is difficult to reach customers.
These bidders attach great importance to the measures that Kahlon will implement, and whether he will allow mobile carriers Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) and Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) to own small stakes in the IEC venture. In other words, there must be a commitment by the two carriers to use the new infrastructure, otherwise it will have no customers. Both Partner and Cellcom say that without price controls, they will not participate in the venture, in which case it will never be established, because it needs Bezeq and HOT's infrastructures to complete the deployment of fiber optic lines in areas that are too costly to reach.
The tenders committee agreed to amend clauses relating to the venture's deployment, such as interim deployments, and it agreed to lower the costs of IEC employees who work for the venture. But in general, its responses are very problematic as they stand now, and it is doubtful that the bidders will participate in the tended under its current terms.
The bidders believe that there is no alternative but to postpone the tender by several months, because that is how long it will take to secure financing from the banks. This is irrespective of discussions on other important issues.
The banks are unenthusiastic about financing the IEC venture under the current terms, and they have to carry out a feasibility study of it.
Kahlon declined to respond, saying only that the matter was under review.
Bethel Finance: Unemployment rate at historic low in Q4 2011
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The unemployment rate fell to an all-time low of 5.4% of the civilian labor force in the fourth quarter of 2011 from 5.6% in the preceding quarter, the Central Bureau of Statistics reported today. The unemployment rate fell to 5.6% in 2011 from 6.6% in 2010, with a net increase of 87,000 jobs during the year.
The unemployment rate of 5.4% in December was unchanged since July.
Participation in the labor force rose to 54.2% in 2011 from 53.5% in 2010. The labor force totaled 3.23 million in the fourth quarter, of whom 3.05 million were employed and 175,000 were unemployed.
High-tech employees accounted for 10.3% of all employees in 2011, up from 10.2% in 2010. The number of contract workers through employment agencies fell to 23,400 persons in 2011 from 29,300 in 2010.
The employment rate among persons aged 25-64 rose to 72.1% in 2011 from 71.2% in 2010, and full-time employees accounted for 77.4% of all employees, up from 76.7% the year before.
Tel Aviv had the lowest unemployment rate among cities with more than 100,000 residents, at 4.4% in 2011, down from 5.7% in 2010. Bene Brak and Netanya had the highest unemployment rates, at 7.9% and 6.8%, respectively. Rishon LeZion had the highest employment rate, at 62.9%, followed by Petah Tikva at 62.7%, and Tel Aviv at 62.5%. Bnei Brak and Jerusalem had the lowest employment rates, at 32.3% and 43.2%, respectively.
The unemployment rate fell to an all-time low of 5.4% of the civilian labor force in the fourth quarter of 2011 from 5.6% in the preceding quarter, the Central Bureau of Statistics reported today. The unemployment rate fell to 5.6% in 2011 from 6.6% in 2010, with a net increase of 87,000 jobs during the year.
The unemployment rate of 5.4% in December was unchanged since July.
Participation in the labor force rose to 54.2% in 2011 from 53.5% in 2010. The labor force totaled 3.23 million in the fourth quarter, of whom 3.05 million were employed and 175,000 were unemployed.
High-tech employees accounted for 10.3% of all employees in 2011, up from 10.2% in 2010. The number of contract workers through employment agencies fell to 23,400 persons in 2011 from 29,300 in 2010.
The employment rate among persons aged 25-64 rose to 72.1% in 2011 from 71.2% in 2010, and full-time employees accounted for 77.4% of all employees, up from 76.7% the year before.
Tel Aviv had the lowest unemployment rate among cities with more than 100,000 residents, at 4.4% in 2011, down from 5.7% in 2010. Bene Brak and Netanya had the highest unemployment rates, at 7.9% and 6.8%, respectively. Rishon LeZion had the highest employment rate, at 62.9%, followed by Petah Tikva at 62.7%, and Tel Aviv at 62.5%. Bnei Brak and Jerusalem had the lowest employment rates, at 32.3% and 43.2%, respectively.
Bethel Finance: Credit card cos profits up 10% in 2011
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Israel's three credit card companies reported another year of revenue and profit growth. Their aggregate profit was NIS 648 million in 2011, 10% more than in 2010, and credit card use rose 7.4% to NIS 198 billion.
The companies' aggregate revenue rose 6.7% to NIS 3.8 billion in 2011 from NIS 3.56 billion in 2010, according to the financial reports of Isracard Ltd., owned by Bank Hapoalim (TASE: POLI); Israel Credit Cards-Cal Ltd. (ICC-Cal) (Visa), owned by Israel Discount Bank (TASE: DSCT) with a 71.2% stake and First International Bank of Israel (TASE: FTIN) with a 28.8% stake; and Leumi Card Ltd., owned by Bank Leumi (TASE: LUMI), with an 80% stake and Azrieli Group Ltd. (TASE: AZRG), with 20%.
Despite the results, Isracard CEO Dov Kotler says, "The combination of the slowing economic growth rate and the drop in cross fees will erode profitability."
ICC-Cal CEO Israel David says, "Competition for business is intense, and margins are falling." Leumi Card CEO Tamar Yasur agrees, "We're in a defensive position."
The main threat to the credit card companies comes from the reduction in cross fees. After five years of talks, in late December, the companies reached a deal with the Antitrust Authority to gradually reduce cross fees to 0.7% in 2015, and keep them at this level until 2018. The current rate is 0.875%, down from 1.1% two years ago. Each 0.1% reduction in fees costs the companies NIS 200 million.
"For the first time since 2006, Isracard, the largest credit card company, reported the highest profit - NIS 231 million in 2011, up 11% on 2010. Turnover by its credit cards was NIS 97 billion, up 7.8%, giving a 49% market share. Revenue rose to NIS 1.73 billion in 2011 from NIS 1.58 billion in 2010. By law, Isracard brand credit cards will be open to cross clearing in May, which will affect the company's revenue" says Mr. Cedric Marmet from Bethel Finance Ltd.
ICC-Cal's profit rose 7% to NIS 230 million in 2011, and its revenue rose 2.4% to NIS 1.1 billion. Turnover by its credit cards rose 6.8% to NIS 49.4 billion.
Leumi Card's profit was NIS 177 million, after reporting the highest growth among the companies, of 12%. Revenue rose 7.1% to NIS 938 million. Turnover by its credit cards crossed the NIS 50 billion threshold, rising 7.3% over 2010 to NIS 51.4 billion in 2011.
Israel's three credit card companies reported another year of revenue and profit growth. Their aggregate profit was NIS 648 million in 2011, 10% more than in 2010, and credit card use rose 7.4% to NIS 198 billion.
The companies' aggregate revenue rose 6.7% to NIS 3.8 billion in 2011 from NIS 3.56 billion in 2010, according to the financial reports of Isracard Ltd., owned by Bank Hapoalim (TASE: POLI); Israel Credit Cards-Cal Ltd. (ICC-Cal) (Visa), owned by Israel Discount Bank (TASE: DSCT) with a 71.2% stake and First International Bank of Israel (TASE: FTIN) with a 28.8% stake; and Leumi Card Ltd., owned by Bank Leumi (TASE: LUMI), with an 80% stake and Azrieli Group Ltd. (TASE: AZRG), with 20%.
Despite the results, Isracard CEO Dov Kotler says, "The combination of the slowing economic growth rate and the drop in cross fees will erode profitability."
ICC-Cal CEO Israel David says, "Competition for business is intense, and margins are falling." Leumi Card CEO Tamar Yasur agrees, "We're in a defensive position."
The main threat to the credit card companies comes from the reduction in cross fees. After five years of talks, in late December, the companies reached a deal with the Antitrust Authority to gradually reduce cross fees to 0.7% in 2015, and keep them at this level until 2018. The current rate is 0.875%, down from 1.1% two years ago. Each 0.1% reduction in fees costs the companies NIS 200 million.
"For the first time since 2006, Isracard, the largest credit card company, reported the highest profit - NIS 231 million in 2011, up 11% on 2010. Turnover by its credit cards was NIS 97 billion, up 7.8%, giving a 49% market share. Revenue rose to NIS 1.73 billion in 2011 from NIS 1.58 billion in 2010. By law, Isracard brand credit cards will be open to cross clearing in May, which will affect the company's revenue" says Mr. Cedric Marmet from Bethel Finance Ltd.
ICC-Cal's profit rose 7% to NIS 230 million in 2011, and its revenue rose 2.4% to NIS 1.1 billion. Turnover by its credit cards rose 6.8% to NIS 49.4 billion.
Leumi Card's profit was NIS 177 million, after reporting the highest growth among the companies, of 12%. Revenue rose 7.1% to NIS 938 million. Turnover by its credit cards crossed the NIS 50 billion threshold, rising 7.3% over 2010 to NIS 51.4 billion in 2011.
Bethel Finance: FDA approves Thrombotech stroke study
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Thrombotech Ltd. has obtained US Food and Drug Administration (FDA) approval for a Phase IIa clinical trial of THR-18, its treatment for ischemic stroke by destroying blood clots. The trial, to be conducted in the US, will test the safety of the drug.
Thrombotech began the clinical trial at Hadassah Medical Center in Jerusalem and Sourasky Medical Center (Ichilov Hospital) in Tel Aviv. The company is waiting to receive regulatory permits for trials in Europe and India.
"Global Data" estimates the global market for stroke medication at $2.8 billion in 2008, and that it will grow by 3.4% a year through 2015.
"Clal Biotechnology Industries Ltd. (TASE: CBI) owns 46% of Thromobotech, Hadasit Bio Holdings Ltd. (TASE:HDST) owns 24%, and Ofer Hi Tech Ltd. owns 29%" said Mr. Peres Sailm from Bethel Finance Ltd.
Hadasit Bio's share price rose 9.8% in morning trading to NIS 0.56, giving a market cap of NIS 49 million, and Clal Biotech's share price rose 1.6% to NIS 12.95, giving a market cap of NIS 1.3 billion.
Thrombotech Ltd. has obtained US Food and Drug Administration (FDA) approval for a Phase IIa clinical trial of THR-18, its treatment for ischemic stroke by destroying blood clots. The trial, to be conducted in the US, will test the safety of the drug.
Thrombotech began the clinical trial at Hadassah Medical Center in Jerusalem and Sourasky Medical Center (Ichilov Hospital) in Tel Aviv. The company is waiting to receive regulatory permits for trials in Europe and India.
"Global Data" estimates the global market for stroke medication at $2.8 billion in 2008, and that it will grow by 3.4% a year through 2015.
"Clal Biotechnology Industries Ltd. (TASE: CBI) owns 46% of Thromobotech, Hadasit Bio Holdings Ltd. (TASE:HDST) owns 24%, and Ofer Hi Tech Ltd. owns 29%" said Mr. Peres Sailm from Bethel Finance Ltd.
Hadasit Bio's share price rose 9.8% in morning trading to NIS 0.56, giving a market cap of NIS 49 million, and Clal Biotech's share price rose 1.6% to NIS 12.95, giving a market cap of NIS 1.3 billion.
Bethel Finance: Insurance cos: Management fees reform will hurt
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In notices to the Tel Aviv Stock Exchange (TASE) today, insurance companies say that the management fees reform passed by the Knesset Finance Committee will have a material effect on their business, and that they were assessing the effects. The reform will cap management fees on provident and pension funds at substantially lower levels than the current prevailing rates.
Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), controlled by Nochi Dankner's controlled IDB Holding Corp. Ltd. (TASE:IDBH), said, "The coming into effect of the regulations and the change in the cap on management fees will likely result in a substantial reduction in the management fees that the group's investment institutions will collect as a consequence of the reduction of management fees on the accumulation at provident funds, and also with regard to current members… The introduction of the new regulations is also liable to increase the rate of cancellations of policies with high management fees previously sold by the company."
Clal Insurance added, "The management fees regulations will affect the company's profitability, the value of new transactions that will be sold in the future, the potential value of life insurance activity and supplementary pension funds, and the value of provident fund operations in the books. The coming into effect of the regulations is also liable to increase operating expenses, especially for finding new members and beneficiaries."
The reform caps management fees at 1.05% on the accumulation and 4% of deposits, beginning in 2014. Current fees range up to 2% on the accumulation.
Clal Insurance's statements were echoed by Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), Menorah Mivtachim Holdings Ltd. (TASE: MORA), and Yitzhak Tshuva-controlled The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) and its subsidiary Excellence Investments Ltd. (TASE: EXCE).
Insurance companies' share prices were mixed following the announcements. Clal Insurance's share price rose 0.8% by midday to NIS 52.20, giving a market cap of NIS 2.9 billion, Migdal's share price rose 1.8% to NIS 51.9, giving a market cap of NIS 5.4 billion, and Menorah's share price rose 0.4% to NIS 27.20, giving a market cap of NIS 1.7 billion. However, Harel's share price fell 0.2% by midday to NIS 122.80, giving a market cap of NIS 2.6 billion, and Phoenix and Excellence's share prices Insurance's share price were unchanged at NIS 9.23, giving a market cap of NIS 2 billion, and at NIS 0.42, giving a market cap of NIS 715 million, respectively.
In notices to the Tel Aviv Stock Exchange (TASE) today, insurance companies say that the management fees reform passed by the Knesset Finance Committee will have a material effect on their business, and that they were assessing the effects. The reform will cap management fees on provident and pension funds at substantially lower levels than the current prevailing rates.
Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), controlled by Nochi Dankner's controlled IDB Holding Corp. Ltd. (TASE:IDBH), said, "The coming into effect of the regulations and the change in the cap on management fees will likely result in a substantial reduction in the management fees that the group's investment institutions will collect as a consequence of the reduction of management fees on the accumulation at provident funds, and also with regard to current members… The introduction of the new regulations is also liable to increase the rate of cancellations of policies with high management fees previously sold by the company."
Clal Insurance added, "The management fees regulations will affect the company's profitability, the value of new transactions that will be sold in the future, the potential value of life insurance activity and supplementary pension funds, and the value of provident fund operations in the books. The coming into effect of the regulations is also liable to increase operating expenses, especially for finding new members and beneficiaries."
The reform caps management fees at 1.05% on the accumulation and 4% of deposits, beginning in 2014. Current fees range up to 2% on the accumulation.
Clal Insurance's statements were echoed by Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), Menorah Mivtachim Holdings Ltd. (TASE: MORA), and Yitzhak Tshuva-controlled The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) and its subsidiary Excellence Investments Ltd. (TASE: EXCE).
Insurance companies' share prices were mixed following the announcements. Clal Insurance's share price rose 0.8% by midday to NIS 52.20, giving a market cap of NIS 2.9 billion, Migdal's share price rose 1.8% to NIS 51.9, giving a market cap of NIS 5.4 billion, and Menorah's share price rose 0.4% to NIS 27.20, giving a market cap of NIS 1.7 billion. However, Harel's share price fell 0.2% by midday to NIS 122.80, giving a market cap of NIS 2.6 billion, and Phoenix and Excellence's share prices Insurance's share price were unchanged at NIS 9.23, giving a market cap of NIS 2 billion, and at NIS 0.42, giving a market cap of NIS 715 million, respectively.
Bethel Finance: Israeli technology services exports reach $9.5b
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Israel has kept its place as one of the largest exporters of know-how and technology in the world, according to a report published by the National Council for R&D at the Ministry of Science and Technology. The report shows that in 2010 Israeli companies exported $9.5 billion in technological services, such as R&D, and licensing agreements on patents and know-how.
This is a 3.4% drop from 2009, but a 17% rise compared with 2007. There were only $2.5 billion worth of imports of these services in 2011, resulting in a $7 billion surplus.
The surplus from R&D and technology exports is among the highest in the world in proportion to economic activity in the country. In 2008, the proportion of technology exports in Israel was 4.6% of GDP, much higher than that of other countries that are highly invested in intensive non-military R&D, such as the US (0.6%), Germany (1.5%), and the UK (1.7%). The country with the highest proportion of technology export in the world was Ireland, with 14.3%.
Expenditure in R&D in Israel, which is financed by R&D sales overseas, is among the highest in the world, at 29%, compared with 10.7% in the EU.
Israel has kept its place as one of the largest exporters of know-how and technology in the world, according to a report published by the National Council for R&D at the Ministry of Science and Technology. The report shows that in 2010 Israeli companies exported $9.5 billion in technological services, such as R&D, and licensing agreements on patents and know-how.
This is a 3.4% drop from 2009, but a 17% rise compared with 2007. There were only $2.5 billion worth of imports of these services in 2011, resulting in a $7 billion surplus.
The surplus from R&D and technology exports is among the highest in the world in proportion to economic activity in the country. In 2008, the proportion of technology exports in Israel was 4.6% of GDP, much higher than that of other countries that are highly invested in intensive non-military R&D, such as the US (0.6%), Germany (1.5%), and the UK (1.7%). The country with the highest proportion of technology export in the world was Ireland, with 14.3%.
Expenditure in R&D in Israel, which is financed by R&D sales overseas, is among the highest in the world, at 29%, compared with 10.7% in the EU.
Bethel Finance: Sea of Life cancels contracts, fires employees
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Sea of Life, which manufactures and markets body care products based on Dead Sea minerals, is struggling to recover from a massive fire that destroyed their factory in Arad in June 2011. Sea of Life CEO Uri Ben Hur announced today that he is planning to cancel deals with foreign customers, including an $11 million contract to supply products to four national US retailers. As a result of damage from the fire, Ben Hur said, the company has not been able to meet demand or manufacture enough products to satisfy customers' needs. 100 out of 180 employees have been laid off over the last six months, some of them just last week.
"I am dealing with a crazy situation and a terrible reality. I wouldn't wish this situation upon anyone. Just now, when I should have been relaxed and comfortable, reaping the fruits of our labor, enjoying the fantastic capital that we have accumulated from years of hard work, everything has burned down, including millions of dollars worth of products," Ben Hur told "Globes" today.
Ben Hur says that his factory was completely destroyed in the fire, except for the kitchen, which is where he is currently carrying out manufacturing on an extremely small scale. The employees tried to repair some of the damaged machinery, and to broadcast an atmosphere of business as usual, but the company was unable to fulfill customers' orders. "Company stores have sold all of their inventory, foreign customers are angry about unreasonable delivery terms, and we have had to cancel a giant $11 million deal that was supposed to be delivered to the US in a month," Ben Hur said.
Ben Hur says he is making an effort to raise the money necessary to rebuilt the factory and restore production to its pre-fire level. "At first, we thought the cause of the fire was arson, but later we learned that it was a short circuit that had caused all this trouble. An insurance appraiser that assessed the damage, estimated it at $10.3 million. On the night of the fire, there was NIS 8.5 million worth of merchandise in the factory. There is a gap between the amount of damage and remuneration from the insurance company, and now I am trying to raise the funds necessary to resume business. We have not yet managed to return to business as usual. This is a tragedy on every level," Ben Hur said.
Ben Hur says that, in the upcoming days, he intends to approach the mayor of Arad and relevant government offices in an urgent search for aid that would save the factory and enable Sea of Life to renew activity. "Sales have fallen 70%. We have no choice - we need help. The fire destroyed everything," he said.
Sea of Life, which manufactures and markets body care products based on Dead Sea minerals, is struggling to recover from a massive fire that destroyed their factory in Arad in June 2011. Sea of Life CEO Uri Ben Hur announced today that he is planning to cancel deals with foreign customers, including an $11 million contract to supply products to four national US retailers. As a result of damage from the fire, Ben Hur said, the company has not been able to meet demand or manufacture enough products to satisfy customers' needs. 100 out of 180 employees have been laid off over the last six months, some of them just last week.
"I am dealing with a crazy situation and a terrible reality. I wouldn't wish this situation upon anyone. Just now, when I should have been relaxed and comfortable, reaping the fruits of our labor, enjoying the fantastic capital that we have accumulated from years of hard work, everything has burned down, including millions of dollars worth of products," Ben Hur told "Globes" today.
Ben Hur says that his factory was completely destroyed in the fire, except for the kitchen, which is where he is currently carrying out manufacturing on an extremely small scale. The employees tried to repair some of the damaged machinery, and to broadcast an atmosphere of business as usual, but the company was unable to fulfill customers' orders. "Company stores have sold all of their inventory, foreign customers are angry about unreasonable delivery terms, and we have had to cancel a giant $11 million deal that was supposed to be delivered to the US in a month," Ben Hur said.
Ben Hur says he is making an effort to raise the money necessary to rebuilt the factory and restore production to its pre-fire level. "At first, we thought the cause of the fire was arson, but later we learned that it was a short circuit that had caused all this trouble. An insurance appraiser that assessed the damage, estimated it at $10.3 million. On the night of the fire, there was NIS 8.5 million worth of merchandise in the factory. There is a gap between the amount of damage and remuneration from the insurance company, and now I am trying to raise the funds necessary to resume business. We have not yet managed to return to business as usual. This is a tragedy on every level," Ben Hur said.
Ben Hur says that, in the upcoming days, he intends to approach the mayor of Arad and relevant government offices in an urgent search for aid that would save the factory and enable Sea of Life to renew activity. "Sales have fallen 70%. We have no choice - we need help. The fire destroyed everything," he said.
Bethel Finance: Shekel strengthens after BoI keeps interest rate unchanged
www.bethelfinance.com
The shekel is strengthening against the dollar, but flat against the euro in morning inter-bank trading today, after the Bank of Israel kept the interest rate for March unchanged at 2.5%. The shekel-dollar exchange rate is down 0.42%, compared with yesterday's representative rate, to NIS 3.787/$, and the shekel-euro exchange rate is flat at NIS 5.095/€.
In international markets, the dollar is trading at $1.344/$ against the euro.
"In the US, the macroeconomic figures that will be published today include orders for durable goods figures in January (analysts expect a 1.3% decline); the Case Sholes Index for home prices for December (analysts expect an annualized 3.6% drop), and consumer confidence (analysts expect 63.5 points). Investors will also monitor commodities prices, especially oil" said Mr. Cedric Marmet from Bethel Finance Ltd.
The shekel is strengthening against the dollar, but flat against the euro in morning inter-bank trading today, after the Bank of Israel kept the interest rate for March unchanged at 2.5%. The shekel-dollar exchange rate is down 0.42%, compared with yesterday's representative rate, to NIS 3.787/$, and the shekel-euro exchange rate is flat at NIS 5.095/€.
In international markets, the dollar is trading at $1.344/$ against the euro.
"In the US, the macroeconomic figures that will be published today include orders for durable goods figures in January (analysts expect a 1.3% decline); the Case Sholes Index for home prices for December (analysts expect an annualized 3.6% drop), and consumer confidence (analysts expect 63.5 points). Investors will also monitor commodities prices, especially oil" said Mr. Cedric Marmet from Bethel Finance Ltd.
Bethel Finance: Vita owner: I want to close the factory - you have a problem?
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Vita owner: I want to close the factory - you have a problem?
Treasury official: This is extortion. They've taken the workers hostage.
28 February 12 10:00, Globes' correspondent
inShare0
"Why attack me? If I want to close the factory, that's my right, isn't it? Is this Russia of the 1970s or Israel of the 2000s? I want to close the factory! You have a problem with me?" Vita Pri Galil Ltd. owner Oshik Efraim told “IDF Radio" (Galei Zahal) today, in response to the criticism leveled against him for closing the company's canning plant. He said that the company's owners did not pocket a penny of the government aid received.
Vita's factory will reopen today at the request of Knesset Finance Committee chairman MK Moshe Gafni (United Torah Judaism), in view of progress in talks on government aid.
Efraim added, "2,000 employees were fired at Agrexco; did anyone cover that? But everyone comes here. Tell me, do you think that I pocketed the NIS 18 million? I didn’t take a penny of this money."
Earlier this week, the Ministry of Finance and Ministry of Industry, Trade and Labor slammed Vita Pri Galil's management for closing its factory in Hazor Haglilit last Friday, and moving the machinery to another factory in Nahariya. The company said that the decision to move the production lines and send 300 employees on unpaid vacation was due to a breach of promise by the government to provide the factory NIS 18 million.
A government official said that the company was ineligible for aid, because the factory was ineligible for a grant under the Law for the Encouragement of Capital Investment, since it did not export its products. The factory would also be ineligible for aid under other programs because the last investment in it was made in 2008, and grants could not be made retroactively.
"This is extortion. There is no other word," a top government official told "Globes" in response to the actions by Vita's owners. "They've taken the factory workers hostage. They haven’t lost money; they simply decided to move their operations to Nahariya because they were promised lower water rates and lower arnona (local property tax). They also pay their employees less there. It's all about profits."
Vita Pri Galil is owned by Oshik Efraim and a brother-in-law, Zaki Shalom, the owner of the Hezi Hinam independent supermarket chain.
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Vita owner: I want to close the factory - you have a problem?
Treasury official: This is extortion. They've taken the workers hostage.
28 February 12 10:00, Globes' correspondent
inShare0
"Why attack me? If I want to close the factory, that's my right, isn't it? Is this Russia of the 1970s or Israel of the 2000s? I want to close the factory! You have a problem with me?" Vita Pri Galil Ltd. owner Oshik Efraim told “IDF Radio" (Galei Zahal) today, in response to the criticism leveled against him for closing the company's canning plant. He said that the company's owners did not pocket a penny of the government aid received.
Vita's factory will reopen today at the request of Knesset Finance Committee chairman MK Moshe Gafni (United Torah Judaism), in view of progress in talks on government aid.
Efraim added, "2,000 employees were fired at Agrexco; did anyone cover that? But everyone comes here. Tell me, do you think that I pocketed the NIS 18 million? I didn’t take a penny of this money."
Earlier this week, the Ministry of Finance and Ministry of Industry, Trade and Labor slammed Vita Pri Galil's management for closing its factory in Hazor Haglilit last Friday, and moving the machinery to another factory in Nahariya. The company said that the decision to move the production lines and send 300 employees on unpaid vacation was due to a breach of promise by the government to provide the factory NIS 18 million.
A government official said that the company was ineligible for aid, because the factory was ineligible for a grant under the Law for the Encouragement of Capital Investment, since it did not export its products. The factory would also be ineligible for aid under other programs because the last investment in it was made in 2008, and grants could not be made retroactively.
"This is extortion. There is no other word," a top government official told "Globes" in response to the actions by Vita's owners. "They've taken the factory workers hostage. They haven’t lost money; they simply decided to move their operations to Nahariya because they were promised lower water rates and lower arnona (local property tax). They also pay their employees less there. It's all about profits."
Vita Pri Galil is owned by Oshik Efraim and a brother-in-law, Zaki Shalom, the owner of the Hezi Hinam independent supermarket chain.
Bethel Finance: Treasury head: Gas prices in Israel are not high
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The price of 95 octane gasoline will jump tomorrow to an all-time high of NIS 8 per liter, however the Ministry of Finance says that it will not reduce excise on gasoline in an effort to ease the burden on drivers. Ministry of Finance acting director general Doron Cohen told Hebrew daily "Ma'ariv" that the ministry has already foregone NIS 2.5 billion this year in revenues from gasoline excise as a result of the Trajtenberg recommendations, and it has no intention of carrying out additional tax cuts.
"We have no control over gasoline prices, but we do have an influence over alternatives we offer the public, and we are encouraging and directing the public to use public transportation, and to buy fuel-efficient vehicles," Cohen said. Nonetheless, he did not talk about the poor state of public transportation in Israel, or about the possibility that the Ministry of Finance could cut travel expenses for government officials, among them ministry employees, who benefit from car leasing contracts paid for by taxpayer money.
"In principle, gasoline prices are relatively low," Cohen added, in reference to specific European countries where gasoline prices are a little higher than in Israel. However, salaries in these countries are much higher, a fact that Cohen did not mention.
Cohen warned that as a result of the gasoline price hike, it is likely that prices of certain products will also rise. "Gasoline is an input for all other products in the economy from cottage cheese, to heating, to transportation of products, as well as flight prices. The price hike will be felt in many areas."
The price of 95 octane gasoline will jump tomorrow to an all-time high of NIS 8 per liter, however the Ministry of Finance says that it will not reduce excise on gasoline in an effort to ease the burden on drivers. Ministry of Finance acting director general Doron Cohen told Hebrew daily "Ma'ariv" that the ministry has already foregone NIS 2.5 billion this year in revenues from gasoline excise as a result of the Trajtenberg recommendations, and it has no intention of carrying out additional tax cuts.
"We have no control over gasoline prices, but we do have an influence over alternatives we offer the public, and we are encouraging and directing the public to use public transportation, and to buy fuel-efficient vehicles," Cohen said. Nonetheless, he did not talk about the poor state of public transportation in Israel, or about the possibility that the Ministry of Finance could cut travel expenses for government officials, among them ministry employees, who benefit from car leasing contracts paid for by taxpayer money.
"In principle, gasoline prices are relatively low," Cohen added, in reference to specific European countries where gasoline prices are a little higher than in Israel. However, salaries in these countries are much higher, a fact that Cohen did not mention.
Cohen warned that as a result of the gasoline price hike, it is likely that prices of certain products will also rise. "Gasoline is an input for all other products in the economy from cottage cheese, to heating, to transportation of products, as well as flight prices. The price hike will be felt in many areas."
Bethel Finance: Histadrut declares labor dispute at Educational TV
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The Histadrut (General Federation of Labor in Israel) today declared a labor dispute at Educational Television over what it calls "a unilateral decision by management to outsource work." Educational Television is government owned.
A source at Educational Television expressed surprise at the announcement, saying, "Nothing has happened recently that is any different from the conduct of the past few years. For example, half of our broadcasts on Channel 2 must be outsourced. That's the law."
The source added that the workers committee told management three weeks ago that they were going to call a labor dispute. "We asked the workers what it was about, but we did not receive an answer," he said.
Educational Television said in response, "Educational Television was surprised by the announcement. We operate by law, and we'll be happy to sit down with the workers and their representatives to review their claims."
The Histadrut (General Federation of Labor in Israel) today declared a labor dispute at Educational Television over what it calls "a unilateral decision by management to outsource work." Educational Television is government owned.
A source at Educational Television expressed surprise at the announcement, saying, "Nothing has happened recently that is any different from the conduct of the past few years. For example, half of our broadcasts on Channel 2 must be outsourced. That's the law."
The source added that the workers committee told management three weeks ago that they were going to call a labor dispute. "We asked the workers what it was about, but we did not receive an answer," he said.
Educational Television said in response, "Educational Television was surprised by the announcement. We operate by law, and we'll be happy to sit down with the workers and their representatives to review their claims."
Bethel Finance: NIS 2.55b withdrawn from provident funds in January
www.bethelfinance.com
NIS 2.55 billion was withdrawn from provident funds in January 2011, 0.85% of their aggregate assets, slightly less than the record NIS 2.72 billion withdrawn in December 2011. Nonetheless, provident funds' aggregate assets totaled NIS 299 billion, recouping most of their losses in 2011.
Market sources attribute this to technical reasons relating to Amendment 5, a directive that allows one-time capital withdrawals for people over 60, under certain circumstances. Withdrawal orders placed in late December were executed in January. As a result, the provident funds net growth rate (change in assets, excluding yield) was minus 1.31% for the preceding 12 months.
Altshuler Shaham Ltd. continued to recruit clients for its provident funds, mainly from other provident funds. Its net accumulation was NIS 258 million in January, including NIS 271 million in transfers. Yelin Lapidot Investment House Ltd. was in second place, with NIS 151 million in transfers and a net accumulation of NIS 178 million. With NIS 6.7 billion in assets under management, it is just NIS 121 million shy of Halman Aldubi Investment House Ltd., and a simple extrapolation suggests that Yelin Lapidot will surpass Halman Aldubi as Israel's tenth largest provident fund manager in March.
Excellence Investments Ltd. (TASE: EXCE) was in third place with net transfers of NIS 67 million, its best month since October 2007, and net accumulation of NIS 30 million. Analyst IMS Investment Management Services Ltd. (TASE:ANLT) was in fourth place with a net accumulation of NIS 5 million, followed by Infinity Investment House Ltd. with a net accumulation of NIS 1 million.
All other provident fund managers had negative accumulation in January, including DS Apex Holdings Ltd. (TASE:DSAP) with NIS 177 million, including NIS 144 million transferred by members to other companies; Psagot Investment House Ltd., with NIS 207 million; Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) with NIS 174 million, Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) with NIS 103 million; Halman Aldubi with NIS 54 million; Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) with NIS 52 million; and Menorah Mivtachim Holdings Ltd. (TASE: MORA) with NIS 38 million.
NIS 2.55 billion was withdrawn from provident funds in January 2011, 0.85% of their aggregate assets, slightly less than the record NIS 2.72 billion withdrawn in December 2011. Nonetheless, provident funds' aggregate assets totaled NIS 299 billion, recouping most of their losses in 2011.
Market sources attribute this to technical reasons relating to Amendment 5, a directive that allows one-time capital withdrawals for people over 60, under certain circumstances. Withdrawal orders placed in late December were executed in January. As a result, the provident funds net growth rate (change in assets, excluding yield) was minus 1.31% for the preceding 12 months.
Altshuler Shaham Ltd. continued to recruit clients for its provident funds, mainly from other provident funds. Its net accumulation was NIS 258 million in January, including NIS 271 million in transfers. Yelin Lapidot Investment House Ltd. was in second place, with NIS 151 million in transfers and a net accumulation of NIS 178 million. With NIS 6.7 billion in assets under management, it is just NIS 121 million shy of Halman Aldubi Investment House Ltd., and a simple extrapolation suggests that Yelin Lapidot will surpass Halman Aldubi as Israel's tenth largest provident fund manager in March.
Excellence Investments Ltd. (TASE: EXCE) was in third place with net transfers of NIS 67 million, its best month since October 2007, and net accumulation of NIS 30 million. Analyst IMS Investment Management Services Ltd. (TASE:ANLT) was in fourth place with a net accumulation of NIS 5 million, followed by Infinity Investment House Ltd. with a net accumulation of NIS 1 million.
All other provident fund managers had negative accumulation in January, including DS Apex Holdings Ltd. (TASE:DSAP) with NIS 177 million, including NIS 144 million transferred by members to other companies; Psagot Investment House Ltd., with NIS 207 million; Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) with NIS 174 million, Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) with NIS 103 million; Halman Aldubi with NIS 54 million; Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) with NIS 52 million; and Menorah Mivtachim Holdings Ltd. (TASE: MORA) with NIS 38 million.
Bethel Finance: Ahimeir, Hazani honored with journalism awards
www.bethelfinance.com
Calacalist reporter Golan Hazani was awarded the 2012 journalism prize by the Israel Media Watch Society, for his outstanding work in the field of financial journalism,Yedioth Ahronoth reported Monday.
"Hazni is an outstanding independent financial reporter. He is responsible for many investigative and interesting reports in the Israeli finance field, including exposing the inappropriate behavior of some of the biggest companies in Israel," the selection committee said:
Also on Monday, senior Channel 1 reporter and broadcaster Ya'akov Ahimeir, 74, was awarded the Israel Prize for his contribution to Israeli media.
"For the past five decades Yaa'kov Ahimeir has been one of the pillars of public broadcasting in Israel," the Israel Prize Committee said.
"He is one of the finest reporters in Israel. In his work, he always managed to separate news from opinion. His style has inspired a generation of reporters," they added.
Ahimeir began his work for Israel Radio as a news editor in 1963. After taking a short-term position with the BBC in London, he returned to Israel and was one of the founders of Israeli television in the 1960's.
He has won several awards, including the Sokolov Prize and Israel Media Watch Society Prize.
"I'm mostly happy for my family since I spent most of my time at work than at home." Ahimeir said. "I'm happy that there were some people who were able to acknowledge my hard work after so many years. It was a very happy moment when the Minister of Education Gideon Sa'ar told me of his decision."
Calacalist reporter Golan Hazani was awarded the 2012 journalism prize by the Israel Media Watch Society, for his outstanding work in the field of financial journalism,Yedioth Ahronoth reported Monday.
"Hazni is an outstanding independent financial reporter. He is responsible for many investigative and interesting reports in the Israeli finance field, including exposing the inappropriate behavior of some of the biggest companies in Israel," the selection committee said:
Also on Monday, senior Channel 1 reporter and broadcaster Ya'akov Ahimeir, 74, was awarded the Israel Prize for his contribution to Israeli media.
"For the past five decades Yaa'kov Ahimeir has been one of the pillars of public broadcasting in Israel," the Israel Prize Committee said.
"He is one of the finest reporters in Israel. In his work, he always managed to separate news from opinion. His style has inspired a generation of reporters," they added.
Ahimeir began his work for Israel Radio as a news editor in 1963. After taking a short-term position with the BBC in London, he returned to Israel and was one of the founders of Israeli television in the 1960's.
He has won several awards, including the Sokolov Prize and Israel Media Watch Society Prize.
"I'm mostly happy for my family since I spent most of my time at work than at home." Ahimeir said. "I'm happy that there were some people who were able to acknowledge my hard work after so many years. It was a very happy moment when the Minister of Education Gideon Sa'ar told me of his decision."
Bethel Finance: Toto betting revenue down 3% in 2011
www.bethelfinance.com
The Israel Sports Betting Board's (Toto) revenue totaled NIS 1.52 billion in 2011, 3% less than the all-time high of NIS 1.57 billion in 2010, according to documents released by Toto at a press conference in Tel Aviv today. The lower revenue was due to lack of major football events last summer, such as the World Cup or UEFA Championship, which are important sources of bets during the off season for European leagues.
The main beneficiaries of Toto's proceeds are the bettors: NIS 908.1 million was paid back to bettors, 59.5% of total revenue. Toto's operating profit was NIS 316 million in 2011.
How much of the proceeds go to athletes, sports organizations, and associations? In 2011, Toto disbursed NIS 217.1 million to sports through support for various sporting bodies. Football, which is also the main source of Toto's revenue (over 80% of bets are on football matches), was in first place, receiving NIS 97.3 million, 45% of Toto's investments. Basketball (the Israeli Basketball Super League Administration Ltd.) received NIS 37.4 million; followed by volleyball, with NIS 9 million, the Olympic Committee of Israel, with NIS 7.7 million, the Israel Handball Association, with NIS 7 million, and the Israel Tennis Association, with NIS 6 million.
Sailing is the biggest beneficiary of Toto money on a per-athlete basis: NIS 7,222 per athlete (NIS 2.87 million for 403 active athletes). Football is in third place, with NIS 4,413 per athlete. Altogether, 76,647 active competitive athletes in all sports are eligible for Toto stipends, with an average stipend of NIS 2,833 in 2011.
Despite the decline in revenue, in 2011, Toto approved a record NIS 444.6 million for future investments in infrastructures, up from NIS 119.1 million in 2010. 58% of the total (NIS 257 million) was allocated for youth programs. The largest single allocation - NIS 63 million - was for one of the stadiums that will be built for the UEFA Under 21 Championship, which Israel will host in 2013.
The Israel Sports Betting Board expects NIS 1.8 billion revenue in 2012. Chairman Zach Fishbein said, "We have set ourselves high targets to double the Sports Betting Board's revenue to NIS 3 billion a year within three years."
Despite the optimism, Toto's ability to boost its revenue in years without major summer sports events is uncertain. Its annual revenue is about the same as three years ago, even though games' schedules and betting options have expanded since then.
The main growth engines that Toto has marked include a platform for betting via cellphone, expanding the Winner betting program, expanding betting to new sports, and bringing horse racing to Israel - a plan that Toto has been talking about for over 15 years.
The Israel Sports Betting Board also plans to clamp down on illegal gambling in Israel, which it says totals NIS 15 billion a year.
The Israel Sports Betting Board's (Toto) revenue totaled NIS 1.52 billion in 2011, 3% less than the all-time high of NIS 1.57 billion in 2010, according to documents released by Toto at a press conference in Tel Aviv today. The lower revenue was due to lack of major football events last summer, such as the World Cup or UEFA Championship, which are important sources of bets during the off season for European leagues.
The main beneficiaries of Toto's proceeds are the bettors: NIS 908.1 million was paid back to bettors, 59.5% of total revenue. Toto's operating profit was NIS 316 million in 2011.
How much of the proceeds go to athletes, sports organizations, and associations? In 2011, Toto disbursed NIS 217.1 million to sports through support for various sporting bodies. Football, which is also the main source of Toto's revenue (over 80% of bets are on football matches), was in first place, receiving NIS 97.3 million, 45% of Toto's investments. Basketball (the Israeli Basketball Super League Administration Ltd.) received NIS 37.4 million; followed by volleyball, with NIS 9 million, the Olympic Committee of Israel, with NIS 7.7 million, the Israel Handball Association, with NIS 7 million, and the Israel Tennis Association, with NIS 6 million.
Sailing is the biggest beneficiary of Toto money on a per-athlete basis: NIS 7,222 per athlete (NIS 2.87 million for 403 active athletes). Football is in third place, with NIS 4,413 per athlete. Altogether, 76,647 active competitive athletes in all sports are eligible for Toto stipends, with an average stipend of NIS 2,833 in 2011.
Despite the decline in revenue, in 2011, Toto approved a record NIS 444.6 million for future investments in infrastructures, up from NIS 119.1 million in 2010. 58% of the total (NIS 257 million) was allocated for youth programs. The largest single allocation - NIS 63 million - was for one of the stadiums that will be built for the UEFA Under 21 Championship, which Israel will host in 2013.
The Israel Sports Betting Board expects NIS 1.8 billion revenue in 2012. Chairman Zach Fishbein said, "We have set ourselves high targets to double the Sports Betting Board's revenue to NIS 3 billion a year within three years."
Despite the optimism, Toto's ability to boost its revenue in years without major summer sports events is uncertain. Its annual revenue is about the same as three years ago, even though games' schedules and betting options have expanded since then.
The main growth engines that Toto has marked include a platform for betting via cellphone, expanding the Winner betting program, expanding betting to new sports, and bringing horse racing to Israel - a plan that Toto has been talking about for over 15 years.
The Israel Sports Betting Board also plans to clamp down on illegal gambling in Israel, which it says totals NIS 15 billion a year.
Bethel Finance: Bank of Israel keeps interest rate unchanged
www.bethelfinance.comThe Bank of Israel today kept the interest rate for March unchanged at 2.5%, in line with analysts' expectations.
The Bank of Israel cited the rise in 12-month inflation expectations by 0.2 percentage points in the past month to 2.5%, although inflation over the previous twelve months continues to settle firmly within the inflation target range.
The Bank of Israel also notes that the latest economic indicators show that the rate of economic growth continued to slow in the fourth quarter of 2011 and in January 2012, although some monthly indicators (such as the manufacturing production index, trade and services revenue index, and the index of imports of production inputs) point to a slight improvement in recent months. With that, indicators of real economic activity are consistent with the Bank of Israel growth forecast of 2.8% in 2012.
Finally, the Bank of Israel points to a mixed picture on global economic activity, with relatively encouraging data in the US, indications of recession in Japan and Europe, and mixed data on emerging markets. Interest rates in major economies are low, and markets are not pricing in an increase in the interest rate this year by any of the central banks of large advanced economies. The US Federal Reserve Board has declared that the federal funds rate will remain at its near-zero level at least until mid-2014, while the Bank of England and the European Central Bank continue efforts to increase liquidity.
The Bank of Israel cited the rise in 12-month inflation expectations by 0.2 percentage points in the past month to 2.5%, although inflation over the previous twelve months continues to settle firmly within the inflation target range.
The Bank of Israel also notes that the latest economic indicators show that the rate of economic growth continued to slow in the fourth quarter of 2011 and in January 2012, although some monthly indicators (such as the manufacturing production index, trade and services revenue index, and the index of imports of production inputs) point to a slight improvement in recent months. With that, indicators of real economic activity are consistent with the Bank of Israel growth forecast of 2.8% in 2012.
Finally, the Bank of Israel points to a mixed picture on global economic activity, with relatively encouraging data in the US, indications of recession in Japan and Europe, and mixed data on emerging markets. Interest rates in major economies are low, and markets are not pricing in an increase in the interest rate this year by any of the central banks of large advanced economies. The US Federal Reserve Board has declared that the federal funds rate will remain at its near-zero level at least until mid-2014, while the Bank of England and the European Central Bank continue efforts to increase liquidity.
Bethel Finance: Lenovo invests in Vertex's new venture capital fund
www.bethelfinance.com
Lenovo Group Ltd. (SEHK: 0992; OTCBB: LNVGY) is investing tens of millions of dollars in the fourth fund of Vertex Venture Capital. The Chinese computer giant announced today that it would be investing in the venture capital fund. This move reflects Lenovo's strategy of strengthening its presence in Israel through indirect investments via Vertex.
Lenovo said, "The company will make a significant investment in Vertex Venture Capital to pursue new development opportunities in the areas of fixed and mobile broadband communications, digital media technology and applications, enterprise IT and infrastructure and greentech."
Vertex has $600 million under management and its portfolio includes GPS app company Waze, PV optimization company Solaredge, end-user monitoring tools company Aternity and many others.
Lenovo Senior VP and CTO George He said, "We have a very strong position in Israel that mirrors our worldwide results. Lenovo is the number one provider of commercial laptop PCs in the country and the second largest PC vendor overall. The investment in Vertex is aimed to continue our expansion in Israel by building a solid R&D presence in the country. We firmly believe in the great potential inherent in combining the innovative technology and entrepreneurship of Israel-based companies with Lenovo's global presence."
Vertex Venture Capital managing partner Ehud Levy said, "We are delighted to welcome Lenovo to our family of global investors. There is tremendous synergy between our investment focus and Lenovo's long-term business goals. We believe that our strategic partnership with Lenovo will significantly contribute to the further success of our companies as well as bolster the local Israeli high tech sector. Based on our history since inception over 15 years ago, we are confident that this relationship will prove to be a win-win-win situation: for Lenovo, for Vertex's portfolio companies and for Vertex's fund."
Lenovo Group Ltd. (SEHK: 0992; OTCBB: LNVGY) is investing tens of millions of dollars in the fourth fund of Vertex Venture Capital. The Chinese computer giant announced today that it would be investing in the venture capital fund. This move reflects Lenovo's strategy of strengthening its presence in Israel through indirect investments via Vertex.
Lenovo said, "The company will make a significant investment in Vertex Venture Capital to pursue new development opportunities in the areas of fixed and mobile broadband communications, digital media technology and applications, enterprise IT and infrastructure and greentech."
Vertex has $600 million under management and its portfolio includes GPS app company Waze, PV optimization company Solaredge, end-user monitoring tools company Aternity and many others.
Lenovo Senior VP and CTO George He said, "We have a very strong position in Israel that mirrors our worldwide results. Lenovo is the number one provider of commercial laptop PCs in the country and the second largest PC vendor overall. The investment in Vertex is aimed to continue our expansion in Israel by building a solid R&D presence in the country. We firmly believe in the great potential inherent in combining the innovative technology and entrepreneurship of Israel-based companies with Lenovo's global presence."
Vertex Venture Capital managing partner Ehud Levy said, "We are delighted to welcome Lenovo to our family of global investors. There is tremendous synergy between our investment focus and Lenovo's long-term business goals. We believe that our strategic partnership with Lenovo will significantly contribute to the further success of our companies as well as bolster the local Israeli high tech sector. Based on our history since inception over 15 years ago, we are confident that this relationship will prove to be a win-win-win situation: for Lenovo, for Vertex's portfolio companies and for Vertex's fund."
Bethel Finance: Bereshit fund loan enables Petrochemicals to meet 2012 debt
www.bethelfinance.com
Israel Petrochemical Enterprises Ltd. (TASE:PTCH) today announced that it signed an agreement with the Bereshit debt recycling fund for a NIS 120 million, as "Globes" reported last week. The company took the loan to meet its current loan repayments and to extend the duration of its liabilities. The loan will be repaid in three installments: two NIS 10 million payments on the principle in December 2014 and December 2015; and a NIS 100 million payment in September 2016.
Petrochemicals is a holding company controlled by chairman Jacob Gottenstein, David Federman, and Alex Pesel through Modgal Industries Ltd. Its main holding is a 30.7% stake in Oil Refineries Ltd. (TASE:ORL). It is also the controlling shareholder in Avgol Nonwoven Industries Ltd. (TASE:AVGL), with a 23.7% stake. The company's current debt is NIS 1.95 billion, including NIS 1.6 billion to bondholders, and the rest to banks, mostly Bank Hapoalim (TASE: POLI).
Bereshit is lending Petrochemicals a CPI-linked bond bearing 7.25%. The interest payments will be made one per quarter. Bereshit received a priority lien on 30 million Oil Refineries shares, currently worth NIS 60 million, and a secondary lien on 291 million Oil Refineries shares, on which Bank Hapoalim has the priority lien. The bank is a party to the current agreement.
Petrochemicals also awarded Bereshit a five-year option to buy two million shares (6.5% of its share capital). Half of the options have a strike price of NIS 12 per share (a 78% premium on today's opening price), and half have a strike price of NIS 18 per share (a 166% premium).
Petrochemicals has NIS 180 million in cash and the loan will top up its reserves at NIS 300 million. The company is due to make NIS 285 million in interest and principle payments on its bonds and bank loans this year. The loan from Bereshit gives the company the wherewithal to make these payments.
Petrochemicals' share price rose 2.6% by mid-afternoon to NIS 6.93, giving a market cap of NIS 210 million.
Israel Petrochemical Enterprises Ltd. (TASE:PTCH) today announced that it signed an agreement with the Bereshit debt recycling fund for a NIS 120 million, as "Globes" reported last week. The company took the loan to meet its current loan repayments and to extend the duration of its liabilities. The loan will be repaid in three installments: two NIS 10 million payments on the principle in December 2014 and December 2015; and a NIS 100 million payment in September 2016.
Petrochemicals is a holding company controlled by chairman Jacob Gottenstein, David Federman, and Alex Pesel through Modgal Industries Ltd. Its main holding is a 30.7% stake in Oil Refineries Ltd. (TASE:ORL). It is also the controlling shareholder in Avgol Nonwoven Industries Ltd. (TASE:AVGL), with a 23.7% stake. The company's current debt is NIS 1.95 billion, including NIS 1.6 billion to bondholders, and the rest to banks, mostly Bank Hapoalim (TASE: POLI).
Bereshit is lending Petrochemicals a CPI-linked bond bearing 7.25%. The interest payments will be made one per quarter. Bereshit received a priority lien on 30 million Oil Refineries shares, currently worth NIS 60 million, and a secondary lien on 291 million Oil Refineries shares, on which Bank Hapoalim has the priority lien. The bank is a party to the current agreement.
Petrochemicals also awarded Bereshit a five-year option to buy two million shares (6.5% of its share capital). Half of the options have a strike price of NIS 12 per share (a 78% premium on today's opening price), and half have a strike price of NIS 18 per share (a 166% premium).
Petrochemicals has NIS 180 million in cash and the loan will top up its reserves at NIS 300 million. The company is due to make NIS 285 million in interest and principle payments on its bonds and bank loans this year. The loan from Bereshit gives the company the wherewithal to make these payments.
Petrochemicals' share price rose 2.6% by mid-afternoon to NIS 6.93, giving a market cap of NIS 210 million.
Bethel Finance: What you should know before switching to HOT
www.bethelfinance.com
The entry of HOT Telecommunication Systems Ltd. (TASE: HOT) into the Internet segment at a price of NIS 20 per month for all access speeds through subsidiary HOT.net has left the other Internet service providers (ISPs) without a response. Price comparison site Kamaze examined for "Globes" how the competitors are responding. The conclusion: prices have not come down, except for a special offer by Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ).
Internet: HOT.net has the lowest rate at all access speeds, and it is doubtful whether other ISPs can match it.
The advantage of HOT.net's uniform price of NIS 20 per month for all Internet access speeds improves as access speeds increase. For example, at 100 Mbps, this price puts HOT.net far ahead of 012 Smile Telecom Ltd., which charges NIS 120, 013 NetVision Ltd., which charges NIS 130, and Bezeq International Ltd., which charges NIS 200. Only tiny ISP 018 Xfone Communications Ltd. offers an attractive price: NIS 35.
There are also differences at lower Internet speeds: Triple C Ltd. and Xfone offer 5 Mbps at NIS 25 per month, Smile offers this speed at NIS 28, and NetVision and Bezeq International offer it at NIS 40.
Triple play: Since Bezeq and its satellite TV subsidiary DBS Satellite Services (1998) Ltd. (YES) cannot offer a triple play package (TV, telephony, and Internet access), or a TV-telephone package, HOT has the edge, offering a Triple play package at NIS 330 per month, which includes all cable TV stations, telephony, and 100 Mbps Internet access.
Buying the components separately from Bezeq and YES costs at least NIS 450 per month: the starting price for YES is NIS 200 for the basic package, and climbs to NIS 279 for all channels together with YES Max Total VOD service. Bezeq's Internet access costs NIS 45 per month (for new customers receiving 2.5 Mbps), and the minimum price for telephony service is NIS 58 per month for the line, and does not include calls.
It should be noted that, so far, Minister of Communications Moshe Kahlon has rejected ISPs' requests to block HOT's new package because of what they contend is the damage they are liable to face from HOT.net's cooperation with HOT, which they claim was launched without the Ministry of Communications' permission.
Exit fines cancelled
Subscribers' commitment to ISPs is a thing of the past, so it is important to utilize competition to switch between ISPs on the basis of their offerings. Consumers have not yet grasped that the commitment is gone, as demonstrated by the continuing low churn rates at ISPs.
Liat Nahum of Kamaze says that the ease at which it is possible to leave an ISP gives subscribers the advantage. "Customers who call their ISP to terminate service in order to switch to HOT.net receive offers for Internet prices that are lower than they currently pay."
18-month price commitment
The price for customers is guaranteed for 18 months. Customers must terminate their agreement from their previous ISP on their own.
The entry of HOT Telecommunication Systems Ltd. (TASE: HOT) into the Internet segment at a price of NIS 20 per month for all access speeds through subsidiary HOT.net has left the other Internet service providers (ISPs) without a response. Price comparison site Kamaze examined for "Globes" how the competitors are responding. The conclusion: prices have not come down, except for a special offer by Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ).
Internet: HOT.net has the lowest rate at all access speeds, and it is doubtful whether other ISPs can match it.
The advantage of HOT.net's uniform price of NIS 20 per month for all Internet access speeds improves as access speeds increase. For example, at 100 Mbps, this price puts HOT.net far ahead of 012 Smile Telecom Ltd., which charges NIS 120, 013 NetVision Ltd., which charges NIS 130, and Bezeq International Ltd., which charges NIS 200. Only tiny ISP 018 Xfone Communications Ltd. offers an attractive price: NIS 35.
There are also differences at lower Internet speeds: Triple C Ltd. and Xfone offer 5 Mbps at NIS 25 per month, Smile offers this speed at NIS 28, and NetVision and Bezeq International offer it at NIS 40.
Triple play: Since Bezeq and its satellite TV subsidiary DBS Satellite Services (1998) Ltd. (YES) cannot offer a triple play package (TV, telephony, and Internet access), or a TV-telephone package, HOT has the edge, offering a Triple play package at NIS 330 per month, which includes all cable TV stations, telephony, and 100 Mbps Internet access.
Buying the components separately from Bezeq and YES costs at least NIS 450 per month: the starting price for YES is NIS 200 for the basic package, and climbs to NIS 279 for all channels together with YES Max Total VOD service. Bezeq's Internet access costs NIS 45 per month (for new customers receiving 2.5 Mbps), and the minimum price for telephony service is NIS 58 per month for the line, and does not include calls.
It should be noted that, so far, Minister of Communications Moshe Kahlon has rejected ISPs' requests to block HOT's new package because of what they contend is the damage they are liable to face from HOT.net's cooperation with HOT, which they claim was launched without the Ministry of Communications' permission.
Exit fines cancelled
Subscribers' commitment to ISPs is a thing of the past, so it is important to utilize competition to switch between ISPs on the basis of their offerings. Consumers have not yet grasped that the commitment is gone, as demonstrated by the continuing low churn rates at ISPs.
Liat Nahum of Kamaze says that the ease at which it is possible to leave an ISP gives subscribers the advantage. "Customers who call their ISP to terminate service in order to switch to HOT.net receive offers for Internet prices that are lower than they currently pay."
18-month price commitment
The price for customers is guaranteed for 18 months. Customers must terminate their agreement from their previous ISP on their own.
Bethel Finance: Africa Israel mulls NIS 600m early bond repayment
Africa-Israel Investments Ltd. (TASE:AFIL), controlled by Lev Leviev, reported today that it is mulling early repayment of capital on its Series 26 bonds due in 2013 and 2014, totaling NIS 600 million.
Africa-Israel is examining offering one or more new bond series, the repayment date of which will be decided in accordance with the company's liquidity reserves and its projected cash flow for the next few years.
The new bond series will be issued as an exchange tender offer that would allow Series 26 bondholders the choice of retaining the current Series 26 bonds or exchanging them for new bonds, which would include an immediate payment of the capital on the Series 26 bonds due in 2013 and 2014.
Africa-Israel CEO Izzy Cohen said, "Africa-Israel management decided to investigate the possibility of early repayment of the principal, as well as examining the use of its excess liquidity, to lower its financial debt. In examining the move, which will be carried out through an exchange tender offer, Africa-Israel management considered, among other things, the accumulation of liquidity reserves at the company, a lack of available investment channels offering acceptable returns on these reserves, and the lack of economic certainty currently prevailing in global markets.
"This move, insofar as it is accepted by bondholders, will enable them to choose whether to continue holding existing bonds, or to exchange them for new bonds. It will also express Africa-Israel's commitment to its bondholders and shareholders to meet its obligations as early as possible," Cohen said.
Africa-Israel is examining offering one or more new bond series, the repayment date of which will be decided in accordance with the company's liquidity reserves and its projected cash flow for the next few years.
The new bond series will be issued as an exchange tender offer that would allow Series 26 bondholders the choice of retaining the current Series 26 bonds or exchanging them for new bonds, which would include an immediate payment of the capital on the Series 26 bonds due in 2013 and 2014.
Africa-Israel CEO Izzy Cohen said, "Africa-Israel management decided to investigate the possibility of early repayment of the principal, as well as examining the use of its excess liquidity, to lower its financial debt. In examining the move, which will be carried out through an exchange tender offer, Africa-Israel management considered, among other things, the accumulation of liquidity reserves at the company, a lack of available investment channels offering acceptable returns on these reserves, and the lack of economic certainty currently prevailing in global markets.
"This move, insofar as it is accepted by bondholders, will enable them to choose whether to continue holding existing bonds, or to exchange them for new bonds. It will also express Africa-Israel's commitment to its bondholders and shareholders to meet its obligations as early as possible," Cohen said.
Bethel Finance: Israeli gov't debt down to 73.3% of GDP
www.bethelfinance.com
At the end of 2011, government debt as a proportion of GDP was 1.6% less than at the end of 2010, at 73.3%, the Debt Management Unit of the Accountant General's office reported today. At the end of 2011, the government debt totaled NIS 633 billion, compared with NIS 608 billion at the end of 2010. The Ministry of Finance explains that the nominal growth in government debt is due to NIS 12 billion positive net funding, and to the rise in inflation, which contributed an additional NIS 7 billion to the growth in government debt.
In addition, Ministry of Finance data show that public debt (including debt of local authorities) as a proportion of GDP fell 1.6% to 74.7%. Interest payments on debt and National Insurance reached NIS 36.3 billion. Despite the nominal rise in interest payments, the rate of interest payments as a proportion of GDP fell in 2011 to 4.2%, compared with 4.3% in 2010.
In response to the data, Minister of Finance Yuval Steinitz said, "The continuing reduction of debt as a proportion of GDP, especially in view of stark rises in other countries, testify to the government's fiscal discipline and long-term economic policies, and contributes to the growth of the economy and to foreign investment in Israel."
Accountant General Michal Abadi-Boiangiu said, "A proportion of debt to GDP is a major factor in determining a country's credit rating, and lowering this ratio contributes to raising a country's credit rating and to lowering fundraising costs."
At the end of 2011, government debt as a proportion of GDP was 1.6% less than at the end of 2010, at 73.3%, the Debt Management Unit of the Accountant General's office reported today. At the end of 2011, the government debt totaled NIS 633 billion, compared with NIS 608 billion at the end of 2010. The Ministry of Finance explains that the nominal growth in government debt is due to NIS 12 billion positive net funding, and to the rise in inflation, which contributed an additional NIS 7 billion to the growth in government debt.
In addition, Ministry of Finance data show that public debt (including debt of local authorities) as a proportion of GDP fell 1.6% to 74.7%. Interest payments on debt and National Insurance reached NIS 36.3 billion. Despite the nominal rise in interest payments, the rate of interest payments as a proportion of GDP fell in 2011 to 4.2%, compared with 4.3% in 2010.
In response to the data, Minister of Finance Yuval Steinitz said, "The continuing reduction of debt as a proportion of GDP, especially in view of stark rises in other countries, testify to the government's fiscal discipline and long-term economic policies, and contributes to the growth of the economy and to foreign investment in Israel."
Accountant General Michal Abadi-Boiangiu said, "A proportion of debt to GDP is a major factor in determining a country's credit rating, and lowering this ratio contributes to raising a country's credit rating and to lowering fundraising costs."
Bethel Finance: Noble Energy joins Jewish Agency disadvantaged children project
www.bethelfinance.com
Noble Energy Inc. (NYSE: NBL) yesterday announced that it has joined the Jewish Agency Youth Futures program, which supports disadvantaged children and children at risk in Israel's periphery. Noble Energy's $2 million donation targets programs in four towns: Beersheva, Ofakim, Lod, and Safed.
The announcement of Noble Energy's partnership was made at a Jewish Agency governors meeting at the Inbal Hotel in Jerusalem, in the presence of Jewish community leaders from around the world, Jewish Agency Board of Governors chairman James Tisch, executive chairman Natan Sharansky, and Noble Energy director of corporate affairs Bini Zomer.
Youth Futures is a leading program for children at risk and for narrowing social gaps in Israel. The program works with the education and welfare systems, municipal authorities, schools, and communities. Jewish communities around the world, Israeli and foreign foundations, and Israeli companies, finance the program. The program's 2012 budget is NIS 40 million.
Noble Energy SVP Eastern Mediterranean Operations Lawson Freeman said that the company hoped that this would be the start of long and fruitful collaboration.
Members of Israel's business community were also present at the event, including Raya Strauss Ben-Dror, Eliezer (Modi) Zandberg, Galia Albin, Moshe Golbary, Dedi Levi, Moshe Teumim, Tali Biron, Yehiel Eckstein, Miriam (Miki) Haran, and Eli Avidar.
Noble Energy Inc. (NYSE: NBL) yesterday announced that it has joined the Jewish Agency Youth Futures program, which supports disadvantaged children and children at risk in Israel's periphery. Noble Energy's $2 million donation targets programs in four towns: Beersheva, Ofakim, Lod, and Safed.
The announcement of Noble Energy's partnership was made at a Jewish Agency governors meeting at the Inbal Hotel in Jerusalem, in the presence of Jewish community leaders from around the world, Jewish Agency Board of Governors chairman James Tisch, executive chairman Natan Sharansky, and Noble Energy director of corporate affairs Bini Zomer.
Youth Futures is a leading program for children at risk and for narrowing social gaps in Israel. The program works with the education and welfare systems, municipal authorities, schools, and communities. Jewish communities around the world, Israeli and foreign foundations, and Israeli companies, finance the program. The program's 2012 budget is NIS 40 million.
Noble Energy SVP Eastern Mediterranean Operations Lawson Freeman said that the company hoped that this would be the start of long and fruitful collaboration.
Members of Israel's business community were also present at the event, including Raya Strauss Ben-Dror, Eliezer (Modi) Zandberg, Galia Albin, Moshe Golbary, Dedi Levi, Moshe Teumim, Tali Biron, Yehiel Eckstein, Miriam (Miki) Haran, and Eli Avidar.
Bethel Finance: Most websites don't know how they were hacked
www.bethelfinance.com
The hacking of Israeli websites in recent months has put Internet security on the agenda. The hacking caused an initial public panic, which gradually faded, apparently giving way to more cautious use of websites.
The fact that users need to display greater caution is highlighted by a global survey, "Compromised Websites: An Owner’s Perspective", of over 600 website owners conducted between November 2011 and January 2012 by IT security company Commtouch Software Ltd. (Nasdaq: CTCH; TASE: CTCH) and StopBadware.
The report states that 63% of website owners "simply don’t know how their sites were compromised." 36% of website owners who became aware of a breach of security did not know what their site was (mis)used for. Just 6% of website owners were able to detect a problem on the basis of strange or increased activity within their sites. 49% of website owners discovered that their sites were compromised from a browser warning, and 18% learned about it from colleagues or friends.
The report leads to the conclusion that website owners may be helpless in the face of hacking activity, which can threaten to harm Internet users. If website owners do not assume responsibility or show awareness of security, users of theirs sites are left exposed.
The report says that 26% of respondents said that their sites were still compromised, and 5% chose to do nothing, believing that the problem had been resolved. 2% abandoned the website instead of dealing with the problem. 46% of respondents fixed the problem themselves, and 10% called an IT expert.
The report said that 20% of respondents admitted that their failure to update website software and/or plug-ins had likely left them open to attack. 6% of respondents said that stolen credentials (user names or passwords) enabled hackers to access their websites.
The hacking of Israeli websites in recent months has put Internet security on the agenda. The hacking caused an initial public panic, which gradually faded, apparently giving way to more cautious use of websites.
The fact that users need to display greater caution is highlighted by a global survey, "Compromised Websites: An Owner’s Perspective", of over 600 website owners conducted between November 2011 and January 2012 by IT security company Commtouch Software Ltd. (Nasdaq: CTCH; TASE: CTCH) and StopBadware.
The report states that 63% of website owners "simply don’t know how their sites were compromised." 36% of website owners who became aware of a breach of security did not know what their site was (mis)used for. Just 6% of website owners were able to detect a problem on the basis of strange or increased activity within their sites. 49% of website owners discovered that their sites were compromised from a browser warning, and 18% learned about it from colleagues or friends.
The report leads to the conclusion that website owners may be helpless in the face of hacking activity, which can threaten to harm Internet users. If website owners do not assume responsibility or show awareness of security, users of theirs sites are left exposed.
The report says that 26% of respondents said that their sites were still compromised, and 5% chose to do nothing, believing that the problem had been resolved. 2% abandoned the website instead of dealing with the problem. 46% of respondents fixed the problem themselves, and 10% called an IT expert.
The report said that 20% of respondents admitted that their failure to update website software and/or plug-ins had likely left them open to attack. 6% of respondents said that stolen credentials (user names or passwords) enabled hackers to access their websites.
Bethel Finance: Shekel crosses 3.8/$ as interest rate decision awaited
www.bethelfinance.com
The shekel is weakening against both the dollar and euro in morning inter-bank trading today. The shekel-dollar exchange rate is up 1.25%, compared with yesterday's representative rate, at NIS 3.8028/$ and the shekel-euro exchange rate is up 1.54% at NIS 5.1074/€. The last time the shekel-dollar rate rose above 3.8 was in December last year.
The main reason for the weakening of the shekel is the sharp falls on the Tel Aviv Stock Exchange yesterday, with foreign investors selling shares in shekels and converting the shekels to dollars, causing the exchange rate to rise. The continuing tension with Iran is also a factor contributing to a weaker shekel, causing foreign investors to reduce risk, as they perceive it.
G20 leaders gathered Saturday night in Mexico City to discuss the global economic situation, specifically the Eurozone's stumbling economy, and reached agreement in principle to provide a broad bailout package for Europe worth $2 trillion. The agreement was reached after Germany's withdrew its opposition to the move.
The Bank of Israel's Monetary Committee, headed by Governor of the Bank of Israel Prof. Stanley Fischer, will leave the interest rate for March at 2.5% this afternoon, senior economic analysts unanimously predict in a "Bloomberg" survey (all 24 analysts said they saw no change). The committee lowered the interest rate for February by 25 basis points, the fourth reduction in the past 12 months.
The shekel is weakening against both the dollar and euro in morning inter-bank trading today. The shekel-dollar exchange rate is up 1.25%, compared with yesterday's representative rate, at NIS 3.8028/$ and the shekel-euro exchange rate is up 1.54% at NIS 5.1074/€. The last time the shekel-dollar rate rose above 3.8 was in December last year.
The main reason for the weakening of the shekel is the sharp falls on the Tel Aviv Stock Exchange yesterday, with foreign investors selling shares in shekels and converting the shekels to dollars, causing the exchange rate to rise. The continuing tension with Iran is also a factor contributing to a weaker shekel, causing foreign investors to reduce risk, as they perceive it.
G20 leaders gathered Saturday night in Mexico City to discuss the global economic situation, specifically the Eurozone's stumbling economy, and reached agreement in principle to provide a broad bailout package for Europe worth $2 trillion. The agreement was reached after Germany's withdrew its opposition to the move.
The Bank of Israel's Monetary Committee, headed by Governor of the Bank of Israel Prof. Stanley Fischer, will leave the interest rate for March at 2.5% this afternoon, senior economic analysts unanimously predict in a "Bloomberg" survey (all 24 analysts said they saw no change). The committee lowered the interest rate for February by 25 basis points, the fourth reduction in the past 12 months.
Bethel Finance: Nurses strike
www.bethelfinance.com
Nurses employed at hospitals, municipal infant clinics, and Clalit Health Services are holding a 24-hour warning strike today after negotiations with Ministry of Finance representatives failed to yield results. Strike leaders are protesting against increasing overcrowding at hospitals and a shortage of nursing staff in hospital wards.
"The time has come for patients to be removed from the hallways, and for all the departments that were closed to be reopened," said nurses' union chairwoman Ilana Cohen this morning. "Patients deserve to lay in a hospital bed under decent conditions. The nurse shortage problem needs to be resolved, and patients should not be abandoned in corridors."
The Ministry of Finance said that negotiations with Cohen lasted through the night. "Despite efforts by the deputy finance minister and Ministry of Finance representatives to find a solution to ease the nurses' burden, an agreement has not yet been reached, and the nurses decided to strike today. Negotiations will continue today in an effort to find a solution, and to end the strike as quickly as possible," the Ministry of Finance announced.
Nurses employed at hospitals, municipal infant clinics, and Clalit Health Services are holding a 24-hour warning strike today after negotiations with Ministry of Finance representatives failed to yield results. Strike leaders are protesting against increasing overcrowding at hospitals and a shortage of nursing staff in hospital wards.
"The time has come for patients to be removed from the hallways, and for all the departments that were closed to be reopened," said nurses' union chairwoman Ilana Cohen this morning. "Patients deserve to lay in a hospital bed under decent conditions. The nurse shortage problem needs to be resolved, and patients should not be abandoned in corridors."
The Ministry of Finance said that negotiations with Cohen lasted through the night. "Despite efforts by the deputy finance minister and Ministry of Finance representatives to find a solution to ease the nurses' burden, an agreement has not yet been reached, and the nurses decided to strike today. Negotiations will continue today in an effort to find a solution, and to end the strike as quickly as possible," the Ministry of Finance announced.
Bethel Finance: Banks oppose Partner sale terms
www.bethelfinance.com
The banks will torpedo Ilan Ben Dov's attempts to finance his debts to bondholders by increasing the debt of Orange franchisee Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR). From "Globes"' checks with the banks, it emerges that they strongly oppose Ben Dov's plan to increase Partner's debt so that it can distribute a dividend to service the debts of its controlling shareholder.
Ben Dov, who has lost NIS 1 billion on paper on his investment in Partner, wants to increase the company's debt as part of the sale of his controlling interest in it to a third party. One of his ideas is to finance the sale partly by increasing Partner's debt after the sale is closed, and on the basis of this capital base, to distribute a dividend to the new shareholders.
In the past few weeks, Ben Dov has been meeting banks, outlining his idea for the sale of the controlling interest in Partner and solving his dilemma. "This is a hallucinatory structure," a top banker said on Friday. "Partner isn't Tao Tsuot Ltd. (TASE: TAO-M) or Suny Electronics Ltd. (TASE: SUNY), where it's possible to make parties at interest deals; to sell and buy as you please. We won't let Partner increase its leverage, which would jeopardize its ability to repay its debt, especially in the current condition of the communications market."
Another banker said, "He (Ben Dov - E.P.) has forgotten that we are not someone to be kept informed, but someone that gives permission, and I doubt that permission can be given to moves like transferring control and increasing the debt of Partner. This is especially true when the capital market has no confidence in Ben Dov, and I don’t think that he realizes just how little."
Worsening leverage
Partner's debt totaled NIS 5.4 billion at the end of September 2011, 71% of its balance sheet total. This debt includes NIS 2.1 billion owed to the banks and NIS 2.6 owned to bondholders, most of which is due for repayment in 2016-18. Partner's debt position has greatly deteriorated since Ben Dov acquired the company. At that time, Partner's debt-to-balance sheet ratio was 43%, and its bank loans totaled just NIS 300 million.
Partner's share price has fallen 55% since the beginning of 2011. Ben Dov-controlled Scailex Corporation (TASE: SCIX; Pink Sheets:SCIXF) owns 44.5% of Partner, worth NIS 2 billion. Against this asset, Scailex has a huge NIS 3 billion debt, mostly to bondholders, and the rest to Hutchison Telecommunications International Ltd. (NYSE: HTX; HKSE: 2332), which gave Scailex an owner's loan to finance the acquisition of the controlling interest in Partner from it.
Most of Scailex's debt is due for repayment over the next two years, and since it cannot repay the debt through the capital market (the yield on Scailex's bonds reaches 24%), Ben Dov recently announced that he wants to sell all or part of his shares in Partner. Scailex has hired Deutsche Bank and Lazard Freres as advisors for a sale, and Deutsche Bank might even extend a $1 billion loan to a potential buyer.
One option is for a third party to buy the public's stake in Partner, becoming its controlling shareholder and taking it private. Ben Dov's stake in such a deal is not clear.
Partner's share price fell 0.3% in early trading on the TASE today to NIS 28.62, after falling 1% on Nasdaq on Friday to $7.84, giving a market cap of $1.22 billion.
The banks will torpedo Ilan Ben Dov's attempts to finance his debts to bondholders by increasing the debt of Orange franchisee Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR). From "Globes"' checks with the banks, it emerges that they strongly oppose Ben Dov's plan to increase Partner's debt so that it can distribute a dividend to service the debts of its controlling shareholder.
Ben Dov, who has lost NIS 1 billion on paper on his investment in Partner, wants to increase the company's debt as part of the sale of his controlling interest in it to a third party. One of his ideas is to finance the sale partly by increasing Partner's debt after the sale is closed, and on the basis of this capital base, to distribute a dividend to the new shareholders.
In the past few weeks, Ben Dov has been meeting banks, outlining his idea for the sale of the controlling interest in Partner and solving his dilemma. "This is a hallucinatory structure," a top banker said on Friday. "Partner isn't Tao Tsuot Ltd. (TASE: TAO-M) or Suny Electronics Ltd. (TASE: SUNY), where it's possible to make parties at interest deals; to sell and buy as you please. We won't let Partner increase its leverage, which would jeopardize its ability to repay its debt, especially in the current condition of the communications market."
Another banker said, "He (Ben Dov - E.P.) has forgotten that we are not someone to be kept informed, but someone that gives permission, and I doubt that permission can be given to moves like transferring control and increasing the debt of Partner. This is especially true when the capital market has no confidence in Ben Dov, and I don’t think that he realizes just how little."
Worsening leverage
Partner's debt totaled NIS 5.4 billion at the end of September 2011, 71% of its balance sheet total. This debt includes NIS 2.1 billion owed to the banks and NIS 2.6 owned to bondholders, most of which is due for repayment in 2016-18. Partner's debt position has greatly deteriorated since Ben Dov acquired the company. At that time, Partner's debt-to-balance sheet ratio was 43%, and its bank loans totaled just NIS 300 million.
Partner's share price has fallen 55% since the beginning of 2011. Ben Dov-controlled Scailex Corporation (TASE: SCIX; Pink Sheets:SCIXF) owns 44.5% of Partner, worth NIS 2 billion. Against this asset, Scailex has a huge NIS 3 billion debt, mostly to bondholders, and the rest to Hutchison Telecommunications International Ltd. (NYSE: HTX; HKSE: 2332), which gave Scailex an owner's loan to finance the acquisition of the controlling interest in Partner from it.
Most of Scailex's debt is due for repayment over the next two years, and since it cannot repay the debt through the capital market (the yield on Scailex's bonds reaches 24%), Ben Dov recently announced that he wants to sell all or part of his shares in Partner. Scailex has hired Deutsche Bank and Lazard Freres as advisors for a sale, and Deutsche Bank might even extend a $1 billion loan to a potential buyer.
One option is for a third party to buy the public's stake in Partner, becoming its controlling shareholder and taking it private. Ben Dov's stake in such a deal is not clear.
Partner's share price fell 0.3% in early trading on the TASE today to NIS 28.62, after falling 1% on Nasdaq on Friday to $7.84, giving a market cap of $1.22 billion.
Bethel Finance: Israel’s Steinitz to Visit China to Sign Financial Protocol
www.bethelfinance.com
Israeli Finance Minister Yuval Steinitz will travel to China tonight to sign a financial protocol aimed at boosting sales overseas.
The protocol will help exporters of Israeli water technology for agriculture, Israel’s Finance Ministry said in an e-mailed statement today.
“The upgrading of Israeli economic relations with China and boosting exports to this country are a strategic goal of primary importance for the Israeli economy,” the statement cited Steinitz as saying.
Israel is seeking to boost sales to fast-growing economies such as China (CNGDPYOY) and India as Europe struggles with a debt crisis and global trade slows. Exports account for about 40 percent of Israel’s gross domestic product.
Steinitz visited China in May 2010 with Environmental Protection Minister Gilad Erdan, to help promote economic ties. Erdan said at the time that Israeli companies have “endless” possibilities to sell technology to China, specifically in the areas of water recycling, desalination and solar power.
Israeli Finance Minister Yuval Steinitz will travel to China tonight to sign a financial protocol aimed at boosting sales overseas.
The protocol will help exporters of Israeli water technology for agriculture, Israel’s Finance Ministry said in an e-mailed statement today.
“The upgrading of Israeli economic relations with China and boosting exports to this country are a strategic goal of primary importance for the Israeli economy,” the statement cited Steinitz as saying.
Israel is seeking to boost sales to fast-growing economies such as China (CNGDPYOY) and India as Europe struggles with a debt crisis and global trade slows. Exports account for about 40 percent of Israel’s gross domestic product.
Steinitz visited China in May 2010 with Environmental Protection Minister Gilad Erdan, to help promote economic ties. Erdan said at the time that Israeli companies have “endless” possibilities to sell technology to China, specifically in the areas of water recycling, desalination and solar power.
Bethel Finance: Israeli insurance firms see hit from capped fees
www.bethelfinance.com
sraeli insurance and pension management companies said on Tuesday a government bill to cap management fees will hit revenue and profitability.
Parliament's finance committee on Monday approved a measure that would cap management fees at 4 percent of deposits and 1.05 percent on accumulation, beginning in 2014. Currently, management fees are up to 2 percent of accumulation.
Israel's largest insurers -- Clal Insurance, Harel Insurance and Financial Investments, Migdal Insurance and Financial Holdings, and Phoenix Holdings -- issued statements saying they would be affected.
"Implementation of the reform is expected to have a significant impact on revenue from management fees ... and also a significant effect on the company's profits," Harel said.
"Implementing the reform will also affect profitability and the value of new life insurance policies that will be sold in the future."
Harel, like its peers, said it was examining the potential impact and steps it could take to mitigate the impact.
Clal Finance said: "The regulations on management fees are liable to impact the company's profitability, the value of new transactions that will be sold in the future, the potential value of life insurance activities and supplementary pension funds, and the value of provident fund (long-term savings) recorded in its books".
Migdal, 69.1 percent owned by Italian insurer Generali , said while its insurance unit will be harmed through lower revenue, the total impact would not be significant.
sraeli insurance and pension management companies said on Tuesday a government bill to cap management fees will hit revenue and profitability.
Parliament's finance committee on Monday approved a measure that would cap management fees at 4 percent of deposits and 1.05 percent on accumulation, beginning in 2014. Currently, management fees are up to 2 percent of accumulation.
Israel's largest insurers -- Clal Insurance, Harel Insurance and Financial Investments, Migdal Insurance and Financial Holdings, and Phoenix Holdings -- issued statements saying they would be affected.
"Implementation of the reform is expected to have a significant impact on revenue from management fees ... and also a significant effect on the company's profits," Harel said.
"Implementing the reform will also affect profitability and the value of new life insurance policies that will be sold in the future."
Harel, like its peers, said it was examining the potential impact and steps it could take to mitigate the impact.
Clal Finance said: "The regulations on management fees are liable to impact the company's profitability, the value of new transactions that will be sold in the future, the potential value of life insurance activities and supplementary pension funds, and the value of provident fund (long-term savings) recorded in its books".
Migdal, 69.1 percent owned by Italian insurer Generali , said while its insurance unit will be harmed through lower revenue, the total impact would not be significant.
Monday, February 27, 2012
Bethel Finance: Clal Finance sees "positive potential" in Africa-Israel debt move
www.bethelfinance.com
Clal Finance research director Yuval Ben-Zeev told "Globes" today that the decision by Africa-Israel Investments Ltd. (TASE:AFIL) to consider bringing forward payments on the principle of its Series 26 Bond was "a creative move with positive potential. It is good for investors."
Ben-Zeev said that, in the past two years, Africa-Israel had adopted a very conservative payments policy, but that it was now considering a split by consent of its current bond into cash and a new bond. "Instead of sitting on cash for two years, I want to pay now and save on the interest payments," adds Ben-Zeev.
Asked about Africa-Israel's share, Ben-Zeev said, "At the current price, AFI Development plc (LSE:AFID) is an opportunity, albeit with risks, of course."
In a notice to the TASE this morning, Africa-Israel, controlled by chairman Lev Leviev, said that it was considering bringing forward payments on the principle of its Series 26 Bond to 2013-14, at a total investment of NIS 600 million.
Africa-Israel's share price rose 2.1% by early afternoon to NIS 12.87, giving a market cap of NIS 1.5 billion.
Clal Finance research director Yuval Ben-Zeev told "Globes" today that the decision by Africa-Israel Investments Ltd. (TASE:AFIL) to consider bringing forward payments on the principle of its Series 26 Bond was "a creative move with positive potential. It is good for investors."
Ben-Zeev said that, in the past two years, Africa-Israel had adopted a very conservative payments policy, but that it was now considering a split by consent of its current bond into cash and a new bond. "Instead of sitting on cash for two years, I want to pay now and save on the interest payments," adds Ben-Zeev.
Asked about Africa-Israel's share, Ben-Zeev said, "At the current price, AFI Development plc (LSE:AFID) is an opportunity, albeit with risks, of course."
In a notice to the TASE this morning, Africa-Israel, controlled by chairman Lev Leviev, said that it was considering bringing forward payments on the principle of its Series 26 Bond to 2013-14, at a total investment of NIS 600 million.
Africa-Israel's share price rose 2.1% by early afternoon to NIS 12.87, giving a market cap of NIS 1.5 billion.
Bethel Finance: Nurses across Israel go on 24-hour strike after talks with state fail
www.bethelfinance.com
Nurses across Israel went on a 24-hour strike on Monday morning, after overnight negotiations betweent the Finance Ministry and the chairman of the national nurses union failed to reach an agreement to prevent the strike.
Negotiations between the parties started on Sunday afternoon, and continued until 4 A.M. on Monday morning, when the talks reached an impasse.
The two sides reached an understanding that the severe shortage of nurses in Israel's health system is a matter of national priority that requires exceptional steps. In return, however, the treasury demanded that nurses agree to hospitalization of patients even when hospitals reach occupancy levels of 150 percent, and that they agree to maintain industrial peace.
The chairperson of the national nurses union, Ilana Cohen, made it clear that no consensus could be reached without a solution for patients lying in hospital corridors, saying that corridor medicine endangers the lives of patients.
The Finance Ministry said that “despite the efforts of Deputy Minister of Finance and representatives of his office to find solutions to alleviate the burden on nurses, an agreement has still not been reached and the nurses decided to strike today. Negotiations will also continue today in order to reach to solutions to end the strike as soon as possible.”
“There is an agreement from the Treasury to make nursing an attractive profession, but nothing has been put in writing yet,” Cohen said, adding that the nurses have demanded additional beds to deal with the high rate of patient intake at hospitals.
“They want me to allow 80 people in a wards and to commit to industrial peace,” she said. “The wards look like parking lots of beds, children are hospitalized one on top of the other, beds are in corridors and next to the toilet. It makes no sense and I will not let patients continue to get this kind of treatment. Patients are not numbers,” she said.
The nurses’ struggle began a year ago, after the nursing teams collapsed under the pressure caused by high occupancy of hospital wards across the country. After nurses resorted to organizational measures, it was agreed that occupancy in internal medicine wards would be reduced immediately to 120 percent, and this year it will be reduced again to 115 percent.
In addition, nursing teams in internal medicine wards were increased, but in recent weeks, wards reached occupancy levels of 140 percent and nursing staff have again collapsed under the strain. Last week, nurses from hospitals in southern Israel abandoned their wards to protests the situation.
Nursing staff from Clalit Health Services community clinics, health offices, baby care clinics, schools and public hospitals across the country are participating in the strike.
In hospital wards, nursing teams are working at limited capacity. Operating theater nursing staff are working Shabbat hours, and will only deal with emergency cases. Oncology and dialysis wards, delivery rooms, premature infant and newborn departments, fertility units and emergency rooms will work with a reduced nursing staff, but will provide regular service. Nurses in geriatric and psychological hospitals will not strike.
A family health clinic will operate in every city which will treat premature infants and pregnant women at risk. Student nurses will also strike, and overseas immunization clinics will be closed.
So far, 2012 has seen a number of strikes and labor disputes. Workers at Haifa, Ashdod and Eilat ports began a strike on Sunday morning, but returned to work on Sunday night, after agreement was brokered by the labor court to postpone the strike while negotiations continue.
Earlier this month, the Israel Railways union announced a strike, freezing the country’s national train service only one day after days-long a nationwide general strike was called off after an agreement was reached by the Finance Ministry and Histadrut labor federation.
Nurses across Israel went on a 24-hour strike on Monday morning, after overnight negotiations betweent the Finance Ministry and the chairman of the national nurses union failed to reach an agreement to prevent the strike.
Negotiations between the parties started on Sunday afternoon, and continued until 4 A.M. on Monday morning, when the talks reached an impasse.
The two sides reached an understanding that the severe shortage of nurses in Israel's health system is a matter of national priority that requires exceptional steps. In return, however, the treasury demanded that nurses agree to hospitalization of patients even when hospitals reach occupancy levels of 150 percent, and that they agree to maintain industrial peace.
The chairperson of the national nurses union, Ilana Cohen, made it clear that no consensus could be reached without a solution for patients lying in hospital corridors, saying that corridor medicine endangers the lives of patients.
The Finance Ministry said that “despite the efforts of Deputy Minister of Finance and representatives of his office to find solutions to alleviate the burden on nurses, an agreement has still not been reached and the nurses decided to strike today. Negotiations will also continue today in order to reach to solutions to end the strike as soon as possible.”
“There is an agreement from the Treasury to make nursing an attractive profession, but nothing has been put in writing yet,” Cohen said, adding that the nurses have demanded additional beds to deal with the high rate of patient intake at hospitals.
“They want me to allow 80 people in a wards and to commit to industrial peace,” she said. “The wards look like parking lots of beds, children are hospitalized one on top of the other, beds are in corridors and next to the toilet. It makes no sense and I will not let patients continue to get this kind of treatment. Patients are not numbers,” she said.
The nurses’ struggle began a year ago, after the nursing teams collapsed under the pressure caused by high occupancy of hospital wards across the country. After nurses resorted to organizational measures, it was agreed that occupancy in internal medicine wards would be reduced immediately to 120 percent, and this year it will be reduced again to 115 percent.
In addition, nursing teams in internal medicine wards were increased, but in recent weeks, wards reached occupancy levels of 140 percent and nursing staff have again collapsed under the strain. Last week, nurses from hospitals in southern Israel abandoned their wards to protests the situation.
Nursing staff from Clalit Health Services community clinics, health offices, baby care clinics, schools and public hospitals across the country are participating in the strike.
In hospital wards, nursing teams are working at limited capacity. Operating theater nursing staff are working Shabbat hours, and will only deal with emergency cases. Oncology and dialysis wards, delivery rooms, premature infant and newborn departments, fertility units and emergency rooms will work with a reduced nursing staff, but will provide regular service. Nurses in geriatric and psychological hospitals will not strike.
A family health clinic will operate in every city which will treat premature infants and pregnant women at risk. Student nurses will also strike, and overseas immunization clinics will be closed.
So far, 2012 has seen a number of strikes and labor disputes. Workers at Haifa, Ashdod and Eilat ports began a strike on Sunday morning, but returned to work on Sunday night, after agreement was brokered by the labor court to postpone the strike while negotiations continue.
Earlier this month, the Israel Railways union announced a strike, freezing the country’s national train service only one day after days-long a nationwide general strike was called off after an agreement was reached by the Finance Ministry and Histadrut labor federation.
Bethel Finance:Israel’s Steinitz to Visit China to Sign Financial Protocol
www.bethelfinance.com
Israeli Finance Minister Yuval Steinitz will travel to China tonight to sign a financial protocol aimed at boosting sales overseas.
The protocol will help exporters of Israeli water technology for agriculture, Israel’s Finance Ministry said in an e-mailed statement today.
“The upgrading of Israeli economic relations with China and boosting exports to this country are a strategic goal of primary importance for the Israeli economy,” the statement cited Steinitz as saying.
Israel is seeking to boost sales to fast-growing economies such as China (CNGDPYOY) and India as Europe struggles with a debt crisis and global trade slows. Exports account for about 40 percent of Israel’s gross domestic product.
Steinitz visited China in May 2010 with Environmental Protection Minister Gilad Erdan, to help promote economic ties. Erdan said at the time that Israeli companies have “endless” possibilities to sell technology to China, specifically in the areas of water recycling, desalination and solar power.
Israeli Finance Minister Yuval Steinitz will travel to China tonight to sign a financial protocol aimed at boosting sales overseas.
The protocol will help exporters of Israeli water technology for agriculture, Israel’s Finance Ministry said in an e-mailed statement today.
“The upgrading of Israeli economic relations with China and boosting exports to this country are a strategic goal of primary importance for the Israeli economy,” the statement cited Steinitz as saying.
Israel is seeking to boost sales to fast-growing economies such as China (CNGDPYOY) and India as Europe struggles with a debt crisis and global trade slows. Exports account for about 40 percent of Israel’s gross domestic product.
Steinitz visited China in May 2010 with Environmental Protection Minister Gilad Erdan, to help promote economic ties. Erdan said at the time that Israeli companies have “endless” possibilities to sell technology to China, specifically in the areas of water recycling, desalination and solar power.
Friday, February 24, 2012
Bethel Finance: Canada incorporation
Canada is one of the world's wealthiest nations with a high per-capita income. It is a member of the Organization for Economic Co-operation and Development (OECD) and the G8 NATO WTO Commonwealth of Nations Francophonie OAS APEC and UN and is one of the world's top ten trading nations.
Canada is a federal state that is governed as a parliamentary democracy and a constitutional monarchy with Queen Elizabeth II as its head of state.
It is a bilingual nation with both English and French as official languages at the federal level. Canada was ranked first among G8 nations to do business in the next five years according to the Economic Intelligence
Unit’s global business rankings forecast 2008-2012. AAA credit rating:
Canada is first in G7 nations in terms of their intrinsic Net worthiness (Moody). Canada debt-to GDP ratio is 38.8 % in 2004-2005 and Canada’ objective is to reduce it to 25% by 2014-2015. NAFTA Advantage: the access to the 443 millions of consumers and a combined GDP of $ 15.4 trillions. US trade with Canada is bigger than all trade with all EU countries combined.
Canada incorporation
Canadian Company, ideal for:
- Businessmen
- Holding intellectual property rights
- Commerce over the Internet
- For the custody of movable and immovable property
- Consultants / Counselors
- For inheritance purposes
- International Trading
Main characteristics:
There are two types of corporations used for business transactions in Canada: those incorporated under federal law and those under provincial laws of 10 provinces 3 territories.
Bethel Finance: Shekel continues to weaken
www.bethelfinance.com
The shekel continues to weaken against the dollar and euro in morning inter-bank trading today, continuing yesterday's trend. The shekel-dollhttp://www.blogger.com/img/blank.gifar exchange rate is up 0.06%, compared with yesterday's representative rate, to NIS 3.754/$ and the shekel-euro exchange rate is up 0.43% to NIS 4.988/€.
In international markets, the dollar is weakening against the euro to $1.327/€ and against the Japanese yen to ¥80.17/$. "The EU Purchasing Managers Index for February, published yesterday, fell below the 50-point dividing line between economic expansion and contraction. The Index fell from 50.6 points in January to 49.7 points, well below analysts' forecasts of 50.5 points" said Mr. Peres Sailam (Bethel Finance Ltd).
In the US, weekly and monthly unemployment claims figures will be published today. Analysts expect an increase in claims.
The shekel continues to weaken against the dollar and euro in morning inter-bank trading today, continuing yesterday's trend. The shekel-dollhttp://www.blogger.com/img/blank.gifar exchange rate is up 0.06%, compared with yesterday's representative rate, to NIS 3.754/$ and the shekel-euro exchange rate is up 0.43% to NIS 4.988/€.
In international markets, the dollar is weakening against the euro to $1.327/€ and against the Japanese yen to ¥80.17/$. "The EU Purchasing Managers Index for February, published yesterday, fell below the 50-point dividing line between economic expansion and contraction. The Index fell from 50.6 points in January to 49.7 points, well below analysts' forecasts of 50.5 points" said Mr. Peres Sailam (Bethel Finance Ltd).
In the US, weekly and monthly unemployment claims figures will be published today. Analysts expect an increase in claims.
Bethel Finance: Netanyahu, Steinitz, Atias to set housing eligibility
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The distortions in setting criteria for affordable housing reached new heights on Tuesday in a Knesset Internal Affairs and Environment debate, during which it was proposed that the prime minister, finance minister, and housing minister should determine who is eligible for benefits. The proposal was made without any debate by the cabinet or the Knesset plenum.
The fifth amendment to the affordable housing chapter in the planning and building bill states that a beneficiary for affordable housing is a person "who meets the criteria set by the ministers on this matter." The definition of "ministers" includes Prime Minister Benjamin Netanyahu, Minister of Finance Yuval Steinitzhttp://www.blogger.com/img/blank.gif, and Minister of Housing and Construction Ariel Atias.
The bill also gives Atias additional powers. He will have the power to set the rental terms and amount of rent in rental control housing projects "at a level that will not exceed 80% of the rent paid by a voluntary tenant to a voluntary landlord for the rent of a similar housing unit in the same area."
"In contrast to the home sales market, no government agency has any authoritative data about rent in the free market. Information published in media about rental transactions comes from parties that want to publish it, and there is no way of verifying the credibility of this information" said Mr. Cedric Marmet (Bethel Finance Ltd).
The distortions in setting criteria for affordable housing reached new heights on Tuesday in a Knesset Internal Affairs and Environment debate, during which it was proposed that the prime minister, finance minister, and housing minister should determine who is eligible for benefits. The proposal was made without any debate by the cabinet or the Knesset plenum.
The fifth amendment to the affordable housing chapter in the planning and building bill states that a beneficiary for affordable housing is a person "who meets the criteria set by the ministers on this matter." The definition of "ministers" includes Prime Minister Benjamin Netanyahu, Minister of Finance Yuval Steinitzhttp://www.blogger.com/img/blank.gif, and Minister of Housing and Construction Ariel Atias.
The bill also gives Atias additional powers. He will have the power to set the rental terms and amount of rent in rental control housing projects "at a level that will not exceed 80% of the rent paid by a voluntary tenant to a voluntary landlord for the rent of a similar housing unit in the same area."
"In contrast to the home sales market, no government agency has any authoritative data about rent in the free market. Information published in media about rental transactions comes from parties that want to publish it, and there is no way of verifying the credibility of this information" said Mr. Cedric Marmet (Bethel Finance Ltd).
Bethel Finance: Internal Affairs C'ttee passes pollution disclosure bill
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The Ministry of Environmental Protection and environmental groups are pleased that the Knesset Internal Affairs and Environment Committee approved a bill that would require enterprises to annually report the level of pollution emissions. The bill will be submitted to the Knesset plenum for its second and third readings in a few weeks.
According to the PRTR (pollutant release and transfer register) for hazardous materials, every enterprise whose operations affect the environment will be required to publicly report the amount and types of pollutants it emits. The bill refers to air pollution, water (river and sea) pollution, as well as hazardous waste.
The Ministry of Environmental Protection believes that the new law will require reports from 500 enterprises around the country, including chemical plants, quarries, sewage treatment plants, and solid waste disposal sites. The public whttp://www.blogger.com/img/blank.gifill be able to access the information about pollution levels disclosed by the enterprises on the Ministry of Environmental Protection website.
The Ministry of Environmental Protection said the new law is another step in promoting environmental transparency, and is a condition for membership in the OECD. "The new law is another significant step in closing the gap between Israel and other developed countries regarding environmental protection.This reporting mechanism will give us full transparency of the affect industrial enterprises have on the environment, and thereby encourage enterprises to minimize environmental harm caused by their operations," said Mr. Peres Sailam (Bethel Finance Ltd).
The Manufacturers Association of Israel has been concerned for quite some time about extensive environmental legislation that would force industries to adjust their operations to the provisions of the new law, and to stricter emissions standards. The Manufacturers Association warns that the costs involved in meeting the requirements set by the law could reach billions of shekels, an expense that some enterprises will not be able to withstand in this financially sensitive period.
The Ministry of Environmental Protection and environmental groups are pleased that the Knesset Internal Affairs and Environment Committee approved a bill that would require enterprises to annually report the level of pollution emissions. The bill will be submitted to the Knesset plenum for its second and third readings in a few weeks.
According to the PRTR (pollutant release and transfer register) for hazardous materials, every enterprise whose operations affect the environment will be required to publicly report the amount and types of pollutants it emits. The bill refers to air pollution, water (river and sea) pollution, as well as hazardous waste.
The Ministry of Environmental Protection believes that the new law will require reports from 500 enterprises around the country, including chemical plants, quarries, sewage treatment plants, and solid waste disposal sites. The public whttp://www.blogger.com/img/blank.gifill be able to access the information about pollution levels disclosed by the enterprises on the Ministry of Environmental Protection website.
The Ministry of Environmental Protection said the new law is another step in promoting environmental transparency, and is a condition for membership in the OECD. "The new law is another significant step in closing the gap between Israel and other developed countries regarding environmental protection.This reporting mechanism will give us full transparency of the affect industrial enterprises have on the environment, and thereby encourage enterprises to minimize environmental harm caused by their operations," said Mr. Peres Sailam (Bethel Finance Ltd).
The Manufacturers Association of Israel has been concerned for quite some time about extensive environmental legislation that would force industries to adjust their operations to the provisions of the new law, and to stricter emissions standards. The Manufacturers Association warns that the costs involved in meeting the requirements set by the law could reach billions of shekels, an expense that some enterprises will not be able to withstand in this financially sensitive period.
Bethel Finance: Finance C'ttee opposes using sovereign fund for defense
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Knesset Finance Committee members oppose recommendations of the inter-ministerial team, headed by National Economics Council chairman Eugene Kandell, which will review the management of the state's revenues from oil and gas resources. During yesterday's discussion, committee members said that the team's recommendations violate the spirit of the Sheshinski Committee to use revenues from natural gas discoveries for social purposes.
Finance Committee chairman MK Moshe Gafni (United Torah Judaism) said that the committee would oppose the use of budgets from the sovereign wealth fund for defense purposes. "I will not allow the insertion of a clause to channel budgets for defense purposes into the law for the establishment of the fund. The law must unequivocally state the social purposes, and if the government does not do this, we will insert the clause into the law that will be sent to the Knesset for approval," he said, adding, "We will not pass a law that allocates additional budgets to the defense budget hole. This violates the spirit of the law. If the bill is not submitted to the committee within a month for approval, we will consider our steps."
The Finance Committee's opposition to using the sovereign wealth fund crossed party lines. MK Uri Yehuda Ariel (National Union) said that transfers should go to defense. MK Avishay Braverman (Labor) said, "The money should be defined so that it is not for defense, unless there is an extraordinary event. The money should be entirely channeled to social-economic security, and the Knesset is the sovereign. The money should not serve as the petty cash for this or any government. The Knesset is the body that should decide, not the prime minister."
Mr. Cedric Marmet (Bethel Finance Ltd) said, "The recommendations completely bypass the Finance Committee's decision on the establishment of the fund when it approved the Sheshinksi recommendations, because it is always possible to find ways to channel money for defense purposes or an emergency. That is why we must decide on a way to bypass the Kandell team."
MK Zevulun Orlev (Jewish Home) compared the recommendations to Swiss cheese. "They have big holes. After all government has a majority of 61 MKs. There should be a majority of 80 MKs, and an opposition too. The issue of defense and emergencies should be removed, because it is always possible to pass ad hoc laws. The law should stipulate specific social purposes. Once again, the economists are arranging so that this fund will not be designated for social purposes."
MK Raleb Majadele (Labor) was even more outspoken, saying that he would not support the recommendations as presented. MK Shlomo Molla (Kadima) said, "The recommendations again prove that the Ministry of Finance's officials are again finding a way to increase budgets available for the prime minister and the Finance Ministry. Why should we give a blank check to the government for some kind of extraordinary event?"
Knesset Finance Committee members oppose recommendations of the inter-ministerial team, headed by National Economics Council chairman Eugene Kandell, which will review the management of the state's revenues from oil and gas resources. During yesterday's discussion, committee members said that the team's recommendations violate the spirit of the Sheshinski Committee to use revenues from natural gas discoveries for social purposes.
Finance Committee chairman MK Moshe Gafni (United Torah Judaism) said that the committee would oppose the use of budgets from the sovereign wealth fund for defense purposes. "I will not allow the insertion of a clause to channel budgets for defense purposes into the law for the establishment of the fund. The law must unequivocally state the social purposes, and if the government does not do this, we will insert the clause into the law that will be sent to the Knesset for approval," he said, adding, "We will not pass a law that allocates additional budgets to the defense budget hole. This violates the spirit of the law. If the bill is not submitted to the committee within a month for approval, we will consider our steps."
The Finance Committee's opposition to using the sovereign wealth fund crossed party lines. MK Uri Yehuda Ariel (National Union) said that transfers should go to defense. MK Avishay Braverman (Labor) said, "The money should be defined so that it is not for defense, unless there is an extraordinary event. The money should be entirely channeled to social-economic security, and the Knesset is the sovereign. The money should not serve as the petty cash for this or any government. The Knesset is the body that should decide, not the prime minister."
Mr. Cedric Marmet (Bethel Finance Ltd) said, "The recommendations completely bypass the Finance Committee's decision on the establishment of the fund when it approved the Sheshinksi recommendations, because it is always possible to find ways to channel money for defense purposes or an emergency. That is why we must decide on a way to bypass the Kandell team."
MK Zevulun Orlev (Jewish Home) compared the recommendations to Swiss cheese. "They have big holes. After all government has a majority of 61 MKs. There should be a majority of 80 MKs, and an opposition too. The issue of defense and emergencies should be removed, because it is always possible to pass ad hoc laws. The law should stipulate specific social purposes. Once again, the economists are arranging so that this fund will not be designated for social purposes."
MK Raleb Majadele (Labor) was even more outspoken, saying that he would not support the recommendations as presented. MK Shlomo Molla (Kadima) said, "The recommendations again prove that the Ministry of Finance's officials are again finding a way to increase budgets available for the prime minister and the Finance Ministry. Why should we give a blank check to the government for some kind of extraordinary event?"
Bethel Finance: Equity One swings to loss in Q4
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Gazit-Globe Ltd. (NYSE: GZT; TASE: GLOB) US subsidiary Equity One Inc. (NYSE: EQY) reported a weak fourth quarter, but revenue and profit growth for 2011 as a whole.
Fourth quarter revenue rose to $75.8 million from $59.2 million for the corresponding quarter of 2010. Funds from operations (FFO) rose to $30.5 millhttp://www.blogger.com/img/blank.gifion ($0.25 per share) for the fourth quarter from $25.8 million for the corresponding quarter, but the company posted a net loss of $3.7 million ($0.04 per share), compared with a net profit of $8.3 million.
"Full-year revenue rose to $291.9 million in 2011 from $230.4 million in 2010. FFO rose to $146.8 million ($1.21 per share) in 2011 from $92 million in 2010, and net profit rose to $33.6 million ($0.29 per share) from $25.1 million" says Mr. Peres Sailam from Bethel Finance Ltd.
Equity One had $103.5 million in cash and cash equivalents at the end of 2011, and $138 million drawn on its revolving credit facilities.
Equity One CEO Jeff Olson said, "We were active capital recyclers during 2011 with over $1 billion of acquisitions and $700 million of dispositions. These transactions significantly upgraded and diversified our portfolio into our core markets of New York, Boston, San Francisco, Los Angeles, Atlanta, and Miami."
Harel Finance analyst Elad Kraus said, "Equity One is fully priced (just like First Capital Realty Inc. (TSX:FCR) (Gazit-Globe's Canadian subsidiary)), and Gazit-Globe's value creation will probably come from Europe through Atrium European Land Ltd. (ATX: ATR; Euronext: ATRS). Gazit-Globe is traded at a discount of 13.5%, its average discount compared with the past."
Equity One's share price fell 0.4% in New York yesterday to $19.53, giving a market cap of $2.24 billion. Gazit-Globe owns 46.8% of Equity One. Its share price fell 1.2% by midday on the TASE to NIS 38.38, after 0.2% in New York to $10.40, giving a market cap of $1.74 billion.
Gazit-Globe Ltd. (NYSE: GZT; TASE: GLOB) US subsidiary Equity One Inc. (NYSE: EQY) reported a weak fourth quarter, but revenue and profit growth for 2011 as a whole.
Fourth quarter revenue rose to $75.8 million from $59.2 million for the corresponding quarter of 2010. Funds from operations (FFO) rose to $30.5 millhttp://www.blogger.com/img/blank.gifion ($0.25 per share) for the fourth quarter from $25.8 million for the corresponding quarter, but the company posted a net loss of $3.7 million ($0.04 per share), compared with a net profit of $8.3 million.
"Full-year revenue rose to $291.9 million in 2011 from $230.4 million in 2010. FFO rose to $146.8 million ($1.21 per share) in 2011 from $92 million in 2010, and net profit rose to $33.6 million ($0.29 per share) from $25.1 million" says Mr. Peres Sailam from Bethel Finance Ltd.
Equity One had $103.5 million in cash and cash equivalents at the end of 2011, and $138 million drawn on its revolving credit facilities.
Equity One CEO Jeff Olson said, "We were active capital recyclers during 2011 with over $1 billion of acquisitions and $700 million of dispositions. These transactions significantly upgraded and diversified our portfolio into our core markets of New York, Boston, San Francisco, Los Angeles, Atlanta, and Miami."
Harel Finance analyst Elad Kraus said, "Equity One is fully priced (just like First Capital Realty Inc. (TSX:FCR) (Gazit-Globe's Canadian subsidiary)), and Gazit-Globe's value creation will probably come from Europe through Atrium European Land Ltd. (ATX: ATR; Euronext: ATRS). Gazit-Globe is traded at a discount of 13.5%, its average discount compared with the past."
Equity One's share price fell 0.4% in New York yesterday to $19.53, giving a market cap of $2.24 billion. Gazit-Globe owns 46.8% of Equity One. Its share price fell 1.2% by midday on the TASE to NIS 38.38, after 0.2% in New York to $10.40, giving a market cap of $1.74 billion.
Bethel Finance: Concentration c'tee head: Recommendations will be fully implemented
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Committee for Concentration in the Economy chairman Haim Shani told "Non-stop" Radio 103 FM that he believes that the committee's recommendations will be fully implemented. In the interview, which was conducted by Globes' editor Hagai Golan and Rina Matzliah, Shani said, "The committee has been working for a long time to create a long-term process of change. Knesset members have been great partners in the process, especially Finance Committee chairman MK Moshe Gafni (United Torah Judaism), who has been in touch with the committee, and believes this is an important issue."
Do you agree with the claim that without the social protest, the committee would have disintegrated?
"Forgive me for being unromantic, but this is just not true. Anyone who looks at our calendar can see that we began working in June, before the social protest began, and that we have kept to our schedule. We are professionals, and our job is to look at the problematic aspects of the Israeli economy."
Shani emphasized, "In some developed countries, such as the UK, there are no non-financial and financial holdings. Moreover, there are many opportunities in the Israeli market, and business people can invest their money in other areas as well. I cannot know what every business person will do after the recommendations are implemented."
Is there a feeling that these steps might prevent investors from doing business in Israel?
"As part of the process, we also met with foreign entities, some of which expressed views that are completely the opposite of what you are saying. There is a chance that we will see even more foreign investors in the Israeli market."
Did you receive a request to cool things down at some point?
"We were given no hints, no committee members made any requests, and there were no requests not even small ones."
Will it take years to implement the committee's recommendations?
"If you want to make significant changes in society and in the market, you need to be patient. It takes time."
The Concentration Committee presented its final recommendations to the government yesterday. It recommended stricter criteria for defining significant non-financial corporations. It advises that the controlling shareholder of a significant non-financial corporation that also owns a significant financial enterprise, must sell one of them within four years.
Committee for Concentration in the Economy chairman Haim Shani told "Non-stop" Radio 103 FM that he believes that the committee's recommendations will be fully implemented. In the interview, which was conducted by Globes' editor Hagai Golan and Rina Matzliah, Shani said, "The committee has been working for a long time to create a long-term process of change. Knesset members have been great partners in the process, especially Finance Committee chairman MK Moshe Gafni (United Torah Judaism), who has been in touch with the committee, and believes this is an important issue."
Do you agree with the claim that without the social protest, the committee would have disintegrated?
"Forgive me for being unromantic, but this is just not true. Anyone who looks at our calendar can see that we began working in June, before the social protest began, and that we have kept to our schedule. We are professionals, and our job is to look at the problematic aspects of the Israeli economy."
Shani emphasized, "In some developed countries, such as the UK, there are no non-financial and financial holdings. Moreover, there are many opportunities in the Israeli market, and business people can invest their money in other areas as well. I cannot know what every business person will do after the recommendations are implemented."
Is there a feeling that these steps might prevent investors from doing business in Israel?
"As part of the process, we also met with foreign entities, some of which expressed views that are completely the opposite of what you are saying. There is a chance that we will see even more foreign investors in the Israeli market."
Did you receive a request to cool things down at some point?
"We were given no hints, no committee members made any requests, and there were no requests not even small ones."
Will it take years to implement the committee's recommendations?
"If you want to make significant changes in society and in the market, you need to be patient. It takes time."
The Concentration Committee presented its final recommendations to the government yesterday. It recommended stricter criteria for defining significant non-financial corporations. It advises that the controlling shareholder of a significant non-financial corporation that also owns a significant financial enterprise, must sell one of them within four years.
Bethel Finance:Ormat Technologies guides higher for 2012
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Ormat Industries Ltd. (TASE: ORMT) subsidiary Ormat Technologies Inc. (NYSE: ORA) swung to a loss on higher revenue in 2011, and predicts further revenue growth in 2012.
Full-year revenue rose 17% to $437 million in 2011 from $373.2 million in 2010. Product revenue rose 39% to $113.2 million from $81.4 million, and electricity revenue rose 11% to $323.8 million from $291.8 million. Average electricity rate rose to $83 per megawatt/hour in from $78 per megawatt/hour in 2010.
In its guidance for 2012, Ormat forecasts $315-330 million in electricity revenue and $150-165 million product segment revenue, for a total of $465-495 million.
Ormat Technologies posted a GAAP-based net loss of $42.7 million ($0.95 per share) in 2011, due to $61.5 million valuation allowance against US tax assets. Excluding this allowance, net profit was $18.8 million, down from $37.2 million in 2010, which included a $36.9 million capital gain from the acquisition of the controlling interest of the Mammoth geothermal complex in California.
Fourth quarter revenue rose 33% to $123.7 million from $92.8 million for the corresponding quarter of 2010. The company posted a net loss of $43 million ($0.95 per share) for the fourth quarter, compared with a net profit of $4.5 million for the corresponding quarter.
Ormat decided not to distribute a dividend for the fourth quarter of 2011, but it expects to pay dividends during 2012. The company had $118.4 million in cash and cash equivalents at the end of 2011, and $70.1 million in unused credit.
Ormat Technologies owns geothermal and recovered energy-based power plants in the US, Guatemala, Nicaragua, and Kenya. The company has more projects planned in the US, Kenya, Chile, and New Zealand. Its product backlog is $240 million.
Ormat CEO Yehudit Bronicki said, "Lease acquisition and green field development remain key to our long-term objectives. In 2011, we added 346,000 acres and our exploration land portfolio totals over 675,000 acres. Our exploration efforts continue, and we added new prospects in Chile, New Zealand and the US. We currently have 42 prospects in various stages of exploration. Going into 2012, we have the largest ever product backlog in Ormat's history."
Ormat Technologies' share price fell 0.6% yesterday to $18.24, giving a market cap of $829 million. Ormat Industries' share price fell 0.4% by early afternoon today to NIS 16.08, giving a market cap of NIS 1.9 billion.
Ormat Industries Ltd. (TASE: ORMT) subsidiary Ormat Technologies Inc. (NYSE: ORA) swung to a loss on higher revenue in 2011, and predicts further revenue growth in 2012.
Full-year revenue rose 17% to $437 million in 2011 from $373.2 million in 2010. Product revenue rose 39% to $113.2 million from $81.4 million, and electricity revenue rose 11% to $323.8 million from $291.8 million. Average electricity rate rose to $83 per megawatt/hour in from $78 per megawatt/hour in 2010.
In its guidance for 2012, Ormat forecasts $315-330 million in electricity revenue and $150-165 million product segment revenue, for a total of $465-495 million.
Ormat Technologies posted a GAAP-based net loss of $42.7 million ($0.95 per share) in 2011, due to $61.5 million valuation allowance against US tax assets. Excluding this allowance, net profit was $18.8 million, down from $37.2 million in 2010, which included a $36.9 million capital gain from the acquisition of the controlling interest of the Mammoth geothermal complex in California.
Fourth quarter revenue rose 33% to $123.7 million from $92.8 million for the corresponding quarter of 2010. The company posted a net loss of $43 million ($0.95 per share) for the fourth quarter, compared with a net profit of $4.5 million for the corresponding quarter.
Ormat decided not to distribute a dividend for the fourth quarter of 2011, but it expects to pay dividends during 2012. The company had $118.4 million in cash and cash equivalents at the end of 2011, and $70.1 million in unused credit.
Ormat Technologies owns geothermal and recovered energy-based power plants in the US, Guatemala, Nicaragua, and Kenya. The company has more projects planned in the US, Kenya, Chile, and New Zealand. Its product backlog is $240 million.
Ormat CEO Yehudit Bronicki said, "Lease acquisition and green field development remain key to our long-term objectives. In 2011, we added 346,000 acres and our exploration land portfolio totals over 675,000 acres. Our exploration efforts continue, and we added new prospects in Chile, New Zealand and the US. We currently have 42 prospects in various stages of exploration. Going into 2012, we have the largest ever product backlog in Ormat's history."
Ormat Technologies' share price fell 0.6% yesterday to $18.24, giving a market cap of $829 million. Ormat Industries' share price fell 0.4% by early afternoon today to NIS 16.08, giving a market cap of NIS 1.9 billion.
Bethel Finance: Minister adopts Zelekha report on car imports
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"The Zelekha committee recommendations will boost competition in the motor vehicle market. This is one area that Israelis deal with throughout their lives. Spending on cars is the second largest expense by Israelis," said Minister of Transport Israel Katz at today's press conference to announce that he has accepted the principles of the report by the public committee to increase competition in the motor vehicles market, chaired by Prof. Yaron Zelekha.
"From the moment I took up the post, I thought it necessary to increase competition in the motor vehicles market," said Katz. "As I read the drafts and the final report, I felt that very thorough work was done here, with significant recommendations."
Katz said that he would cooperate with all parts of the government on the Zelekha committee. "The relevant officials at the Ministry of Finance have told me that they accept the main points of the report. There are minor disagreements on some items."
As "Globes" reported yesterday, Katz will set up an inter-ministerial team to implement the Zelekha committee recommendations. The team will include members from the Ministry of Transport, the Ministry of Finance Budget Department, and the Antitrust Authority. A representative from the Israel Tax Authority will also participate in order to broaden the recommendations and formulate supplementary measures to increase competition in the motor vehicles market. The team is due to submit to Katz within 60 days a detailed work plan for implementing the recommendations.
Katz said that implementation of the recommendations "will bring about the reduction in car prices and increase the range of models available for importing into Israel."
However, even before the team was set up and the report signed, the Ministry of Transport made sure to grant a benefit to the wealthy to immediately allow the personal import of US cars that are not manufactured in the US, but which meet US standards.
Zelehka: A shame and disgrace
"I have never encountered such a non-competitive market in which a few dozen big businesses created a cartel and exploited the consumer," said Zelekha. "As a result, the importers and manufacturers enjoyed scandalous profit margins. It's a shame and disgrace that the market was not overhauled."
Zelekha expressed the hope that the privately owned media would be able to overcome the scale of advertising by these importers in order to provide an objective and supportive opinion in favor of the reform. "Israel's media have played a key, but negative, role, in that Israel is ranked 81st in the world in terms of competitiveness, and is the poorest country in the West," he said.
"The Zelekha committee recommendations will boost competition in the motor vehicle market. This is one area that Israelis deal with throughout their lives. Spending on cars is the second largest expense by Israelis," said Minister of Transport Israel Katz at today's press conference to announce that he has accepted the principles of the report by the public committee to increase competition in the motor vehicles market, chaired by Prof. Yaron Zelekha.
"From the moment I took up the post, I thought it necessary to increase competition in the motor vehicles market," said Katz. "As I read the drafts and the final report, I felt that very thorough work was done here, with significant recommendations."
Katz said that he would cooperate with all parts of the government on the Zelekha committee. "The relevant officials at the Ministry of Finance have told me that they accept the main points of the report. There are minor disagreements on some items."
As "Globes" reported yesterday, Katz will set up an inter-ministerial team to implement the Zelekha committee recommendations. The team will include members from the Ministry of Transport, the Ministry of Finance Budget Department, and the Antitrust Authority. A representative from the Israel Tax Authority will also participate in order to broaden the recommendations and formulate supplementary measures to increase competition in the motor vehicles market. The team is due to submit to Katz within 60 days a detailed work plan for implementing the recommendations.
Katz said that implementation of the recommendations "will bring about the reduction in car prices and increase the range of models available for importing into Israel."
However, even before the team was set up and the report signed, the Ministry of Transport made sure to grant a benefit to the wealthy to immediately allow the personal import of US cars that are not manufactured in the US, but which meet US standards.
Zelehka: A shame and disgrace
"I have never encountered such a non-competitive market in which a few dozen big businesses created a cartel and exploited the consumer," said Zelekha. "As a result, the importers and manufacturers enjoyed scandalous profit margins. It's a shame and disgrace that the market was not overhauled."
Zelekha expressed the hope that the privately owned media would be able to overcome the scale of advertising by these importers in order to provide an objective and supportive opinion in favor of the reform. "Israel's media have played a key, but negative, role, in that Israel is ranked 81st in the world in terms of competitiveness, and is the poorest country in the West," he said.
Bethel Finance: Mothers group meets Ofra Strauss: "She seemed under pressure"
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Strauss Group Ltd. (TASE:STRS) chairwoman Ofra Strauss today met with the group of mothers who wrote the letter of protest against the food company’s high prices. The meeting left the mothers furious, and they announced that they would boycott all Strauss products from now on. One of the mothers said, "Ofra seemed under pressure."
The mothers said that Ofra Strauss constantly reiterated remarks made by company representatives to the media. "We told her that, as Israel's second largest food company, she has the power to sit everyone around the same table and try to make changes. She should do what she has to do, and we will do what we have to do - which is to boycott all products of Strauss, Elite and all its subsidiaries," said Iris Levy, who initiated the protest letter.
Levy added, "We call for Strauss products to be kept on the shelves and in the refrigerators, because that is the only way we can show Strauss that we won't be satisfied with sales campaigns. We want an across-the-board price cut. We told Ofra that the moment prices fall, people will have more money to buy the products and there will be more income. She says things that defy logic."
Meanwhile, activists from "Israel is Dear to Us" have been walking the streets outside supermarkets in Beersheva yesterday and today, carrying megaphones, and calling on consumers not to buy Strauss products. One activist outside Shufersal and Mega supermarkets asked everyone entering the stores whether they had heard about the boycott against Strauss. "Good morning Israel! I call on you not to buy Strauss Group products. Not this month; not next month. Maybe we can change things - otherwise we will all end up weeping," he called out.
Activists took care to tell the buyers the names of all Strauss brands. By megaphone, an activist told a shopper who bought a bag of Tapuchips, made by Strauss, "You bought something from Strauss. I see the Tapuchips. Decide if you want to support a monopoly, or to break it."
Activists plan to encamp outside a large supermarket in Hod Hasharon this evening.
Strauss Group Ltd. (TASE:STRS) chairwoman Ofra Strauss today met with the group of mothers who wrote the letter of protest against the food company’s high prices. The meeting left the mothers furious, and they announced that they would boycott all Strauss products from now on. One of the mothers said, "Ofra seemed under pressure."
The mothers said that Ofra Strauss constantly reiterated remarks made by company representatives to the media. "We told her that, as Israel's second largest food company, she has the power to sit everyone around the same table and try to make changes. She should do what she has to do, and we will do what we have to do - which is to boycott all products of Strauss, Elite and all its subsidiaries," said Iris Levy, who initiated the protest letter.
Levy added, "We call for Strauss products to be kept on the shelves and in the refrigerators, because that is the only way we can show Strauss that we won't be satisfied with sales campaigns. We want an across-the-board price cut. We told Ofra that the moment prices fall, people will have more money to buy the products and there will be more income. She says things that defy logic."
Meanwhile, activists from "Israel is Dear to Us" have been walking the streets outside supermarkets in Beersheva yesterday and today, carrying megaphones, and calling on consumers not to buy Strauss products. One activist outside Shufersal and Mega supermarkets asked everyone entering the stores whether they had heard about the boycott against Strauss. "Good morning Israel! I call on you not to buy Strauss Group products. Not this month; not next month. Maybe we can change things - otherwise we will all end up weeping," he called out.
Activists took care to tell the buyers the names of all Strauss brands. By megaphone, an activist told a shopper who bought a bag of Tapuchips, made by Strauss, "You bought something from Strauss. I see the Tapuchips. Decide if you want to support a monopoly, or to break it."
Activists plan to encamp outside a large supermarket in Hod Hasharon this evening.
Bethel Finance:Landau mulls turning to India on gas fields
www.bethelfinance.com
Does the Israeli government want to bring in the Indian government as a party in the development of the Tamar and Leviathan natural gas fields? Minister of Energy and Water Uzi Landau, who is in India, met with Minister of Petroleum and Natural Gas Jaipal Reddy to examine the possibility, a top Israeli energy industry source told "Globes".
Landau's spokesman told "Globes" in response, "During his visit, Minister Landau held many important meetings with key Indian government figures. They included meetings with the minister of petroleum and natural gas and the national security advisor of India. The minister discussed a range of issues with them, with an emphasis on energy and water. He did not discuss with anyone bringing the Indian government or Indian companies into the partnerships for the Tamar and Leviathan fields."
The information is strengthened by reports in the Indian media, which quote Indian government sources as saying that an agreement between the parties could be signed soon. In response to questions on the issue by the Indian press, Landau said that the purpose of his visit was to review collaboration in energy.
Asked whether bilateral cooperation would include rights to the Tamar and Leviathan fields, which have an estimated 24 trillion cubic feet of natural gas, Landau said, "We will do this when the time is right."
Two months ago, Minister of Finance Yuval Steinitz said that Israel might export natural gas to India.
"One of the leading candidates in the matter could be government-owned Oil and Natural Gas Corporation (ONGC)" says Mr. Cedric Marmet from Bethel Finance Ltd.
There are many reasons for Israeli-Indian cooperation. India needs alternative sources of natural gas, as Iran has threatened to cancel an agreement to supply liquefied natural gas to India because of its support for international sanctions against Iran because of its effort to develop nuclear weapons.
For Israel, the proposal to the Indian government may be part of Israel's efforts to broaden the oil embargo against Iran, and prevent India from buying Iranian oil. It might also add another partner for the financing of the gas fields' development and enable gas deliveries from Tamar to begin on time.
Meanwhile, Iran is still India's second largest supplier of natural gas. But the sanctions against Iran are also affecting India, which has delayed signing new contracts for the development of Farzad-B gas field, which has an estimated 21.68 trillion feet of natural gas, and in which ONGC is involved.
Does the Israeli government want to bring in the Indian government as a party in the development of the Tamar and Leviathan natural gas fields? Minister of Energy and Water Uzi Landau, who is in India, met with Minister of Petroleum and Natural Gas Jaipal Reddy to examine the possibility, a top Israeli energy industry source told "Globes".
Landau's spokesman told "Globes" in response, "During his visit, Minister Landau held many important meetings with key Indian government figures. They included meetings with the minister of petroleum and natural gas and the national security advisor of India. The minister discussed a range of issues with them, with an emphasis on energy and water. He did not discuss with anyone bringing the Indian government or Indian companies into the partnerships for the Tamar and Leviathan fields."
The information is strengthened by reports in the Indian media, which quote Indian government sources as saying that an agreement between the parties could be signed soon. In response to questions on the issue by the Indian press, Landau said that the purpose of his visit was to review collaboration in energy.
Asked whether bilateral cooperation would include rights to the Tamar and Leviathan fields, which have an estimated 24 trillion cubic feet of natural gas, Landau said, "We will do this when the time is right."
Two months ago, Minister of Finance Yuval Steinitz said that Israel might export natural gas to India.
"One of the leading candidates in the matter could be government-owned Oil and Natural Gas Corporation (ONGC)" says Mr. Cedric Marmet from Bethel Finance Ltd.
There are many reasons for Israeli-Indian cooperation. India needs alternative sources of natural gas, as Iran has threatened to cancel an agreement to supply liquefied natural gas to India because of its support for international sanctions against Iran because of its effort to develop nuclear weapons.
For Israel, the proposal to the Indian government may be part of Israel's efforts to broaden the oil embargo against Iran, and prevent India from buying Iranian oil. It might also add another partner for the financing of the gas fields' development and enable gas deliveries from Tamar to begin on time.
Meanwhile, Iran is still India's second largest supplier of natural gas. But the sanctions against Iran are also affecting India, which has delayed signing new contracts for the development of Farzad-B gas field, which has an estimated 21.68 trillion feet of natural gas, and in which ONGC is involved.
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