Goldman Sachs, Bear Stearns offer 35% over market for Hapoalim's Gilat stake
Bank Hapoalim owns 14% of Gilat Satellite Networks, obtained under the creditors arrangement with the company.
"Yediot Ahronot" 11 Mar 04 11:48
globes.co.il
Hebrew daily “Yediot Ahronot” reports that Wall Street investors are again interested in Gilat Satellite Networks (Nasdaq: GILTF; TASE:GILTF). Goldman Sachs (NYSE:GS) and Bear Stearns (NYSE:BSC) recently offered to buy Bank Hapoalim's (LSE:BKHD; TASE:POLI) stake in the company at $10 per share, reflecting a 35% premium on the current share price.
Bank Hapoalim owns 14% of Gilat, obtained under the creditors agreement recently signed with the company. Under arrangement, in which Gilat's creditors were required to convert the company's debts to them to shares, Eliezer Fishman received 15% of Gilat, Israel Discount Bank (TASE:DSCT) 8%, and Mivtach Shamir Holdings (TASE:MISH) 4%. The public owns the remaining shares. Bank Hapoalim stated in response that constantly receives and examines offers for the shares.
Gilat, a provider of satellite communications services, reached $500 million in revenue and a peak share price of $170, reflecting a market cap of $3.8 billion in 1999-2000. When the Nasdaq bubble burst, Gilat underwent one of the most spectacular crashes by a large Israeli company: its share price fell to $0.29 (its current price follows a 20:1 reverse split), reflecting a market cap of $6.7 million.
Oren Most was appointed Gilat CEO a year ago, replacing company founder Yoel Gat. Together with Gilat chairman Shlomo Rodev, Most launched a recovery operation at the company. Gilat's share has performed impressively in recent months, rising over 56% within two months to reflect a current market cap of $100 million.
Published by Globes [online] - www.globes.co.il - on March 11, 2004 |
