|   | | | Nochi Dankner says he has not lost control of IDB Holdings and IDB Development, despite reports of an agreement bondholders reached overnight Thursday ... | Nochi Dankner says he has not lost control of IDB Holdings and IDB Development, despite reports of an agreement bondholders reached overnight Thursday to oust him."I did not lose control. It is true that there was a proposal this morning, but I don't know what they wanted to achieve with it," he said.Dankner added he does not intend to resign, and that he intends to make a better offer from the "wrong and misguided" offered by bondholders
The agreement bondholders reached overnight on Thursday may still oust Nochi Dankner from controlling IDB, the Israeli conglomerate that controls companies such as Cellcom and Shufersal.
The bondholders from two tiers of the pyramid company, IDB Holdings and IDB Development, would merge the two companies and convert bonds to stocks, thus wresting control from Dankner.
IDB Holdings bondholders would get 10% stock of the new company, which will be still be called IDB Holdings, plus NIS 200m. in cash currently held.
The deal still needs court approval to move forward, but the united front is bad news for Dankner.
The bondholders are reportedly seeking court approval to appoint Eyal Gabai, the former Director-General for the Prime Minister's Office, to replace him in running the company.
A series of investments gone sour in recent years left the company in a precarious position, leaving Dankner to seek debt settlements with the bondholders, investment from Argentine billionaire Eduardo Elsztain and for banks to write off debts.
| | 25.05.13 - 17:33 | | Print |  |
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