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IDB examining legal ramifications of Kardan withdrawal from IDB takeover

Kardan exploited exit provided by lack of regulatory approval to avoid paying high price set in deal

The IDB group today announced it is studying the legal ramifications of Kardan withdrawing from the IDB takeover deal.

Among other things IDB is examining the unfulfilled necessary conditions up to the date set in the sale agreement, and Kardan not signing an amended sale agreement extending hte deadline for those conditions.

IDB said that at this stage it has no further information, and it will announce the results of the examination.

February 15th was set as the final date for completing the necesssary conditions. It seems that Kardan decided to pull out of the deal because of difficulties fulfilling the conditions, and disagreements with the Recanati family regarding the price. Kardan apparently found the deal overpriced given IDB's current market value. Kardan therefore exploited a window of opportunity to exit the agreement.

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The Carasso and Recanati families extended agreements for completing all the necessary conditions until February 28 this year. On Sunday Kardan announced cancellation of the deal given the non-fulfillment of the necessary conditions.

Kardan was due to acquire 23.6% in IDB Holdings for $311 million.