Market sources estimate that Tel Aviv-traded Kardan (TASE: KRDN ) made NIS 140 million in six months after acquiring dollar-shekel options intended for hedging its planned investment in the IDB group, a deal which has meanwhile fallen through, Ma'ariv reports.

The sources said that the quick profit was among the reasons that Kardan cancelled the $314 million deal.

Upon signing the agreement in principle to purchase control of the IDB group, Kardan acquired shekel-dollar options in order to protect itself against a possible devaluation. In August 2001 the dollar was trading at NIS 4.20.

Assuming estimates are correct that Kardan acquired options equal to its entire planned investment in IDB, the options protected the value of the investment, based on the dollar price early this morning, NIS 4.63.

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