The Ampal-American Israel Corporation (Nasdaq:AMPL) announced on Thursday that after it will not amalgamate its real estate holdings with its 20%-owned affiliate, Granite Hacarmel Investments Ltd. That's despite an announcement to the contrary, made in December of 2000.

Ampal and its subsidiaries primarily acquire interests in businesses located in Israeli, or that are Israel-related. Ampal's primary investment focus is the technology and communications sectors. But the company also has diversified interests in real estate, capital markets, leisure-time, energy distribution and industry.

Back in December of 2000, Ampal had announced that as part of its strategy to maximize the value of its real estate holdings, it would conduct a feasibility study to see how best to combine its real estate holdings with Granite. The transaction was to have been effected through a merger, asset transfer or stock exchange. Ampal and Granite had even approached the Israeli District Court to obtain the necessary approval.

No reason has been given for the change in plans.