Major energy group Delek, chairman, charged with securities law offenses - TheStreet

The state prosecutor's office announced today it will press charges against Avinoam Finkelman, chairman of Delek Group (TASE: DLEKG ), against Delek and Delek Investments for alleged securities law offenses.

The state prosecution said it is closing the investigation against businessman Yitzhak Tshuva, who controls the Delek group, due to insufficient evidence.

Finkelman, Delek and Delek Investments are suspected of promoting fruadulent acquisition of securities, of including misleading details in an immediate report to the stock exchange, and of failing to include important details in tender offer specifications.

Finkelman, who at the time in questions served as Delek chief executive, and the two companies are suspected of not reporting to the public about substantial progress in the deal in which Delek Automotive Systems subsidiary Delek Motors acquired exclusive distribution rights for Ford cars in Israel. The deal was under consideration when there was an open tender offer for Delek. Reporting the deal could have affected the tender offer.

In June 1999, Delek Motors completed the deal for NIS 58.6 million.