IDB takeover negotiations officially end

Discount Investment Corporation (TASE: DISI ) informed the Tel Aviv Stock Exchange this morning that negotiations to sell the controlling stake in IDB Holdings (TASE: IDBH ) to Leon Recanati, the Carasso family and Kardan (TASE: KRDN ), have been halted after the sides could not reach an agreement.

After Kardan's announced withdrawal from the deal due to unfulfilled preconditions, negotiations were resumed after talks held by cousins Oudi and Leon Recanati in Geneva, Switzerland. The two agreed talks would continue until the Passover holiday with a lower price tag affixed to the concern.

The IDB takeover deal started in July 2001 when Leon Recanati, the Carasso family and Kardan signed agreements to purchase a 37.3% stake in IDB Holdings from El Yam Financial Holdings for $495.9 million. This reflected a company value of $1.33 billion for IDB.

Kardan announced the cancellation of the agreement last month, citing preconditions that had not been met. Although those were the official grounds for annulling the deal, it was widely assumed that Kardan backed down due to the high price tag on the deal, as IDB trades in Tel Aviv now at $797 million, a 60% difference.