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Formula Systems bids to purchase 6% of Liraz Systems

A September accord to buy 37.3% of Liraz shares still awaits antitrust OK

Iscal Holdings-controlled Formula Systems (Nasdaq:FORTY) is increasing its stake in software house Liraz, whose main asset is a 27% holding in Level 8 Systems (Nasdaq:LVEL). Formula offered NIS 6.5 per share for 400,000 Liraz shares, 21% above the market price. The purchase offer totals NIS 2.6 million.

Formula currently holds 7.5%, or 500,000, Liraz shares.

In September Liraz announced an agreement with Discount Investment Corporation and a business enterprise firm belonging to Level 8 chairman Arik Kilman, to purchase 2.48 million, or 37.3% of Liraz's equity capital, from the two firms for $2.25 per share.

Formula will only get these shares after receiving the approval of the Antitrust Authority and its shareholders.

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Shareholders can respond to Formula's purchase offer up to November 20. If its tender is met in full, Formula could end up with a 50.7% stake in Liraz.