Tycoon Yossi Maiman has abandoned plans to buy shares in the Dankner family's Israel Salt Industries, which holds a stake in Bank Hapoalim (TASE:POLI).
Maiman holds controlling stakes in
(Nasdaq:AMPL) and the Merhav holding company.
The decision was reportedly due to credit limitations that would have been imposed on the company were it to buy into Salt Industries.
Advanced talks between Maiman and the Dankners were reported last week, with claims that Maiman was to buy a 33% stake in Salt Industries for $90 million.
"Following an in-depth examination of the acquisition, Ampal has decided not to move forward with the Salt Industries transaction, which would have imposed restrictions that would have interfered with the Ampal management's strategic plans," the notice reads.
"Management reached the conclusion that in an era of liquidity limitations in the Israeli banking sector, the proposed deal would have blocked Ampal and its subsidiaries' access to financing from Bank Hapoalim - too serious a limitation for a company facing a period of investment and development."
A source close to the Dankner group attributed the cancellation to Maiman's unwillingness to disclose his foreign activity to the supervisor of banks at the Bank of Israel.
Maiman associates denied the claim, noting Maiman had served as a director of a U.S. bank, revealing his activities to the Federal Reserve.
The Dankner family will continue talks to sell holdings in Salt Industries to an outside investor, according to the sources.
However, the collapse of the Maiman deal is not expected to impact Nochi Dankner's purchase of a controlling stake in IDB Holding through his firm Ganden.
The source added that talks are being conducted to bring Bank Hapoalim into the Bank Leumi-led consortium that is financing the $540 million takeover. Ganden is controlled by Nochi Dankner, who holds 17% of Salt Industries with other family members. For Hapoalim to finance the IDB deal, Dankner would have to give up his Salt Industries stake.