Businessman Avi Wertheim is negotiating to take over Sadot Venture Capital Management, which manages venture fund Sadot Research & Development Fund (LSE:SDT, TASE:SDRD). Sadot R&D, traded in London and on the Tel Aviv Stock Exchange at an $80 million market cap, did not report the negotiations in its regular reports to the exchange. Industry sources value the deal at $7 million to $10 million. Sadot Management is controlled by Jack Elaad, who holds 75% of the company, together with Abraham Radzinski, Ben-Zion Israel and Roy Segev. Wertheim, formerly the chairman of United Mizrahi Bank, and Elaad declined to comment. Foreign company Pomina Capital holds the rest of the shares in the management company, as well as a right of first refusal. Last week, at the end of a thirty day consideration period it had been given, Pomina exercised its right, effectively nipping the deal in the bud for the moment. Sadot Management holds 8% of Sadot R&D, while Yitzhak Tshuva's Green Software holds 15%. The venture capital sector estimated yesterday that Wertheim's interest in Sadot Management stems from its management agreement with Sadot R&D, granting it annually 3.5% of the capital managed by the fund through 2007.