Following yesterday's collapse of the Kardan-IDB deal, JP Morgan updated its recommendation on IDB Development and Discount Investments.

Analyst Ali Riza Incekara estimates failure to conclude the deal could have a negative impact on the group's restructuring process, although it is possible that Leon Recanati, after selling his 20% stake in the family's Swiss bank DBTC, could increase his stake in the IDB takeover.

Incekara believes the chances a new foreign or local investor will enter the deal, are low. He attributes this to the deteriorating security situation and difficulties in obtaining regulatory approvals.

The analyst also notes that Discount Investments and IDB Development have underperformed the market by 7% and 8% respectively over the past month. He believes Discount Investments, rated ¿underperform¿, is trading at an 11% discount off its net asset value. Incekara rates IDB Development ¿market perform¿, noting its 20% discount.

If you liked this article you might like

Nessuah Zannex: Rating cut's main damage is to banks' images to foreigners

Nessuah Zannex: Rating cut's main damage is to banks' images to foreigners

Yes recruitment rate down to 6,000 a month

Yes recruitment rate down to 6,000 a month

Cadence to invest in Israeli startups

Cadence to invest in Israeli startups

Court grants Mentergy 40-day stay of proceedings

Court grants Mentergy 40-day stay of proceedings

Leader & Co sees Discount shifting to profit in Q3

Leader & Co sees Discount shifting to profit in Q3