Clal Industries CEO Meir Shannie objects to merging the company with Discount Investments,
Shannie believes that investors would do better if both companies were merged with IDB Development Corporation, which should merge with IDB Holding Corporation, according to
The paper also states that Leon Recanati, who is assuming control of the IDB group, has named a panel to submit a recommendation on the group's future structure.
Sources in Israel's capital market yesterday surmised that
are heading for a merger.
On Monday Discount Investments' president and chief business manager, Yoram Turbowicz, announced his resignation. He is being replaced with Elron president Ami Erel.
The sources believe that his departure attests to an intention by the group to merge Discount Investments with Elron at a first stage, and then to merge that united entity with Clal Industries. Clal Industries is headed by Meir Shannie, who replaced Rimon Ben-Shaoul.
Insofar as is known, contacts to merge Discount Investments with Elron are already under way. Both are holding companies focusing on the same fields, mainly communications, which creates a great deal of redundancy in the group.
A merger between Discount Investments and Clal Industries has become increasingly relevant in light of the resignation of Oudi Recanati as co-chairman of TASE-traded
IDB Holding Corporation
. Until his resignation, Oudi Recanati headed the IDB group with his cousin Leon Recanati. Oudi Recanati was involved in the business of Discount Investments, while Leon Recanati was involved in Clal Industries.
It is believed that Shannie will lead the merged activity of Clal Industries and Discount Investments, although Ami Erel is also going to contend for a senior position in the group.
Turbowicz today said that his resignation is due to the resignation of Oudi Recanati, and to the fact that he expects major restructuring in the IDB group.