Four groups contending for Bank Hapoalim's shares in Gilat
31.1.2005 | 11:45
Nitzan Cohen
Gilat Satellite Networks (NASDAQ:GILTF) has had its ups and downs in recent years, as its share price demonstrates. But now it seems to be up again: two more U.S. groups are competing to buy the controlling interest in the Israeli satellite communications provider from Bank Hapoalim (TASE: POLI ). The two newcomers lengthen the list of candidates to four.
Bank Hapoalim received its 14.8% stake in the bank, and an option to increase its interest beyond 40%, in a debt rearrangement for Gilat.
Though four groups are known to be bidding for Hapoalim's Gilat stake, only two are doing so openly. One is Mivtach Shamir Holdings (TASE: MISH ), controlled by Meir Shamir, teamed up with Ishay Davidi's FITE fund, which specializes in buying troubled companies on the cheap, and curing them through involvement in management.
The second group is Texas Pacific, which is offering much more than Shamir-Davidi, effectively putting the Israelis out of the race.
The new groups are offering about $7.5 per Gilat share, which is a cool 14% above the dual-listed Gilat's opening share price on the Tel Aviv Stock Exchange this morning.
Because of the intensifying interest in Gilat, last week Hapoalim began a pricing competition between the bidders. Capital market sources told TheMarker that the bank is confident it can achieve $7.5-$8 per share.
Last Friday one of the American contenders bought more than 200,000 Gilat shares on Wall Street, or about 1% of the company's outstanding share capital, via the kind offices of Merrill Lynch. The group had clamped a limit order pricing the share at no more than $7. Its buying sent Gilat stock climbing 7% on Friday night.
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