Bethel Finance: Railway workers seek court permit for immediate sanctions

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“IDF Radio" (Galei Zahal) reports that Israel Railways have filed an urgent petition with the labor court for permission to launch immediate labor sanctions.

Last week, Israel Railways management told the court in a sharply worded statement that negotiations with the workers committee were deadlocked and that the committee was refusing to cooperate.

The workers committee claims that management's action was unilateral, that it was cutting the employees' social benefits budget, and that the negotiations were leading nowhere.

Management said in response, "The workers committee's allegations are astonishing and divorced from reality. We regret that the workers committee is continuing to engage in deliberate actions to harm train safety and service, instead of honoring the court ruling to fulfill the discussions between the parties."

Bethel Finance: Israel seeks US support for ending oil dependency

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National Economics Council chairman Prof. Eugene Kandel is trying to drum up US support for a plan for reducing oil dependency. Last week, he held a series of meetings in Washington to present Prime Minister Benjamin Netanyahu's plan, approved by the cabinet in January, to develop oil alternatives, including biofuels, synthetics, electric cars, and energy efficient vehicles.

The Americans, who have their own plans, expressed interest in the Israeli plan, which is based on international cooperation. "The Americans see eye-to-eye with us on this," said Kandel, who believes that there are grounds for cooperation in this field. "There is a complete meeting of interests, because the objective of the Israeli plan is to reduce dependency of the US and the whole world, not just by Israel."

Kandel added, "It is very important for us that the US apply this regulation, because it will change the whole world. Transportation's dependency on oil is because our vehicles run on a single kind of fuel, and converting them to several kinds of fuel will significantly lower dependence." He noted that President Barack Obama has called on the US to serve as an example.

Kandel said, "Israel has begun to go out and seek interfaces with similar ventures in an attempt to focus them on this objective. We've met with a great many people, and explained that the focus should be put on this issue. This isn't a comprehensive energy strategy, or that protecting the environment is less important, but compared with all other issues, reducing oil dependency should be given priority. This is an existential matter for us and for the US in the short term."

Bethel Finance: Former Amdocs CEO leads field to be next IAI chair

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Sources inform ''Globes'' that former Amdocs Ltd. (NYSE: DOX) president and CEO Dov Baharav is the leading candidate for the next chairman of Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1).

Minister of Defense Ehud Barak met with IAI chairman Yair Shamir yesterday and told him that he would not reappoint him for a third term.

The source added that Barahav's name came up in the past few days during the search process for the post that Barak and Minister of Finance Yuval Steinitz are leading. Although other names have been mentioned, the sources believe that Barahav has very high chances of winning the appointment.

Shamir's term expires in under two months. The son of former Prime Minister Yitzhak Shamir, he was appointed to the post six years ago by then-Minister of Defense Shaul Mofaz, and was reappointed by Barak three years later. Barak decided a few weeks ago not to reappoint Shamir to another term, and to seek new candidates.

One of the names mentioned was former National Security Advisor Major General (res.) Giora Eiland, but the sources doubt that he has much of a chance.

As a government defense company, the ministers of defense and finance appoint its chairman. Sources close to the matter say that Barak and Steinitz are collaborating on the process, and that it will be completed within days.

The issue of a new chairman has created a stir among IAI's 17,500 employees in recent weeks, in part because of remarks by Shamir, including telling "Defense News" that if he is renominated, the IAI privatization plan would succeed.

Bethel Finance: Teva leads TASE slump

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The Tel Aviv Stock Exchange (TASE) fell today. The Tel Aviv 25 Index fell 1.5% to 1,227.95 points, the Tel Aviv 100 Index fell 1.46% to 1,116.79 points, and the BlueTech 50 Index fell 1.4% to 270.01 points. Turnover was NIS 1.52 billion.

The TASE again fell sharply across the board today, except for the Tel Bond indices. The Tel Aviv 25 Index fell 0.8% for the week and 7.4% for the year to date.

In the bond market, long-term Shahar unlinked government bonds rose by up to 0.1%, and long-term Galil CPI-linked bonds rose by up to 0.3%. The corporate bond benchmark Tel-Bond 20 Index rose 0.12%.

In the foreign currency market, the shekel-dollar exchange rate fell 0.41% to NIS 3.406/$. The shekel-dollar exchange rate fell below NIS 3.40/$ in inter-bank trading before the Bank of Israel intervened and bought $150 million. The shekel-euro representative exchange rate rose 0.08% to NIS 4.93/€.

In the stock market, all the shares on the Tel Aviv 25 Index fell, led by a 3.7% drop by Delek Group Ltd. (TASE: DLEKG).

Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) fell 1.6%, despite announcing FDA approval for a generic Alzheimer's drug and the launch of a new double-dose clinical trial for Copaxone.

Israel Corporation (TASE: ILCO) fell another 2.5% as it continues to be embroiled in the controversy of the Ofer family's alleged dealings with Iran.

Bank Hapoalim (TASE: POLI) fell 1% on the day's largest turnover of NIS 101 million, Bank Leumi (TASE: LUMI) also fell 1%, and Israel Discount Bank(TASE: DSCT) fell 0.4%.

Among Tel Aviv 100 shares, First International Bank of Israel (TASE: FTIN) rose 0.3%, to rise 6.8% for the week, the biggest gain among the index's shares. Real estate developer Elbit Imaging Ltd. (Nasdaq: EMITF; TASE:EMIT) fell another 4.3% and was down 10.7% for the week, the biggest loss among the index's shares.

Brainsway Ltd. (TASE:BRIN) rose 4.9% after announcing that it would postpone a Nasdaq offering.

TechnoPlus Ventures Ltd. (TASE:TNPV) rose 5.6% after announcing that a portfolio company, Shekel Scales Company 2008 Ltd., would begin commercial operations in China.

Bethel Finance:Teva to pay Cephalon execs golden parachutes

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Cephalon Inc. (Nasdaq: CEPH) executives will receive multimillion-dollar golden parachutes if their contracts end early because of an acquisition, according to a filing with the US Securities and Exchange Commission (SEC) by the company about its acquisition by Teva Pharmaceutical Industries Ltd.(Nasdaq: TEVA; TASE: TEVA). Cepahlon CEO Kevin Buchi will be eligible for $14.6 million compensation, including $4.4 million in cash and the rest in shares. Four other executives will receive $5.9-7.9 million in each.

Teva announced its acquisition of Cephalon a month ago for $6.8 billion, rescuing the company from a hostile takeover attempt by Canada's Valeant Pharmaceuticals International Inc. (NYSE; TSX: VRX).

Cephalon also disclosed its expected results for 2011-23, which it provided Teva during the acquisition negotiations. Cephalon expect a net profit of $668 million on $3.1 billion revenue in 2011, but it expects tougher times in 2012, when patents expire: a 19.4% drop in revenue to $2.5 billion and a 41% drop in net profit to $384 million.

Cephalon expects an adjusted net profit of $768 million on $3.4 billion in 2015. Teva's strategic plan states that $5-6 billion of the $31 billion revenue target for 2015 would come from acquisitions. The acquisitions of Germany's Ratiopharm, Cephalon of the US, and other companies will likely result in higher numbers.

Cephalon stated in its filing that it had been in talks with five parties about an acquisition, which it listed as Party A through Party E - three pharmaceutical companies and two financial institutions.

The talks with Teva were initiated in March, when Buchi had dinner with Teva Americas president and CEO William Marth "to discuss industry developments". They did not talk about a deal. A few days later, they held another meeting, which Teva president and CEO Shlomo Yanai attended. At the same time, Cephalon's financial advisors contacted 26 strategic parties and five financial institutions, all of which were interested in acquiring the company.

After the meeting with Yanai on April 7, Teva and Cephalon began talks, and in late April Marth called Buchi with a figure: $80 per share, $7 per more than Valeant was offering. Cephalon's directors asked for more if Teva wanted exclusive negotiations. Marth then said that Teva would offer up to $81.50 per share and no more.

$81.50 was the price set in the deal.

Bethel Finance: Nimrodi upbeat about Myra, Sarah gas fields

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Israel Land Development Company Energy Ltd. (TASE: IE) chairman Ofer Nimrodi says that the company will announce the 3D seismic survey results of the Myra and Sarah offshore gas fields by the of the month, and that they are worth waiting for. He added that ILDC Energy will float a subsidiary on a foreign market.

Speaking at an economic conference in Tel Aviv, Nimrodi said, "Investors are impatient and so am I. The tests prove that it was worth ignoring the noise and waiting. The deeper we went into Sarah and Myra, we concluded that, like good food, it is better to cook slowly and not rush.

"After we completed the analysis, we sent them to Netherland, Sewell and Associates Inc., which made the estimate for Tamar and Leviathan. This is an independent company that provides very conservative estimates. We sent them the material a week ago and they promised to send us the report by the fourth week of June, i.e. this month. The news for investors is: the report will be published by the end of the month."

Nimrodi also disclosed - to the extent permitted - that ILDC Energy was working at a "dizzying pace" to head abroad, and that, "negotiations are at a very advanced stage with two countries with large natural gas reserves. I regret that I cannot say more now. ILDC Energy is heading overseas, and its subsidiary will be floated abroad."

Nimrodi concluded, "I am not a gas tycoon, but I hope that the operations we're undertaking will turn our investors into gas tycoons. I cannot promise oil or gas, but I can promise that we're making every effort to do our best work and to notify the public with the maximum amount of information possible."

ILDC Energy's share price rose 2.6% today to NIS 0.865, giving a market cap of NIS 708 million.

Bethel Finance:Shipping magnate Sammy Ofer dies at 89

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Shipping magnate Sammy Ofer died in his home in Tel Aviv on Friday aged 89. He had been fighting illness for some time and his condition had worsened over the past week.

Ofer is survived by his wife Aviva, sons Eyal and Idan, eight grandchildren and one great grandchild.

Family spokesman and publicist Motti Scherf issued the following statement. "Sammy loved life, had a sophisticated sense of humor and laughing was an important part of his life even though he was always busy with his business. He was a really exceptional man. Through his children and his grandchildren the business group will carry on unchanged in the spirit of its founder, maintaining his tradition of hard work and dedication, which is the great heritage Sammy leaves after him."

Sammy Ofer was born in Romania in 1922 and came to Israel with his family two years later. As a youth he started working as a courier for a shipping company and served in the Haganah, pre-State defense corps before becoming one of Israel's richest tycoons. His fortune was estimated at $10 billion. He was an art collector and coinnesseur, and in 2006 he acquired a Van Gogh painting for $40 million.

Until recent years his brother Yuli was his full business partner. The two brothers separated their businesses with Sammy Ofer's Ofer Holdings Groupcontrolling Israel Corp. (TASE:ILCO) and its units Israel Chemicals Ltd. (TASE:ICL), Zim Integrated Shipping Services Ltd., Oil Refineries Ltd. (TASE:ORL) and Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE:TSEM). His international shipping interests included Royal Caribbean International Ltd. and Zodiac Maritime Agency Ltd.

He was often a controversial figure over the issue of connections between politics and business and he once sued the journalist Micki Rosenthal on the subject.

Ofer was a renowned philanthropist who set up a fund for medications not included in the government health treatment list, and among his many donations were to the Herzliya Interdisciplinary Center's Sammy Ofer School of Communications and the new Haifa soccer stadium, which will be named for him. In 2008, he donated £20 million to the National Maritime Museum in London. He lived for much of his life in England and served in the Royal Navy during the Second World War. He was awarded a KBE by Queen Elizabeth II.

Over the past week, as he lay dying in his Tel Aviv home, he became embroiled in the "Ofergate" scandal after the US State Department imposed sanctions on Ofer Holdings, for alleged sale of the tanker Raffles Park to an Iranian company last year by a subsidiary Tanker Pacific.