The managers of Excellence Investments (TASE: EXCE ) have voiced resentment about the Securities Authority after subsidiary Ofmat's managers were arrested for alleged manipulation of Partner Communications (Nasdaq, TASE:PTNR, LSE:PCCD) on the Tel Aviv Stock Exchange on July 31, 2001.
Roni Biram and Gil Deutsch told Ma'ariv that it is not that difficult to arrest people in order to dictate norms. They added that the authority has never issued criteria for what is allowed or not allowed on the Maof-25 blue-chip index. They said before you are arrested for entering through a No Entry, one should first put up a traffic sign.
Biram and Deutsch agree that Maof speculators affect the stock exchange. They said that any acquisition eventually affects the market, without prior intent. They said that "affect" is not a negative word, unless there is a negative intention.
Bank Hapoalim acquired $25 million and, as a result, the shekel exchange rate against the dollar rose by 1 agora, Biram and Deutsch said to illustrate their position. Wasn't it clear to the bank that this acquisition would affect the price of the dollar? they said.
Biram and Deutsch said that although a rise of 49% in the price of the Partner share is irregular, there are authorities that should ensure proper trading. They said that Ofmat Investments had to acquire Partner shares in order to cover itself when Partner was added to the index and added that the acquisition was made at the last minute in order to minimize risk. Biram and Deutsch said that it was a matter of fate that the deviation in the price of the share was too high. They said there was nothing criminal.
Ofmat managers Golan Cohen and Ronen Reshef were remanded in custody for 48 hours by Tel Aviv District Court on January 22 on suspicion of manipulating shares in Partner. The authority had requested the arrest and questioned the two under warning.