Koor Industries (Nasdaq:KOR) (KOR) today said it will suffer a capital loss of $17.8 million if the deal under negotiation, to sell a 12.5% share interest in ECI Telecom (Nasdaq:ECIL) for $50 million, is carried out.

Koor owns 34.7% of ECI, which makes equipment for telecommunications companies. Its announcement was made at the behest of the Israel Securities Authority.

The deal Koor is negotiating with the Dovrat and Ofer families of Israel values ECI at $400 million, far below its market cap of $469 million.

Koor has recorded its holdings in ECI according to a company value of $800 million.