The Bank of Israel will allow Nochi Dankner's Ganden Holdings to buy the controling interest in IDB Holdings from Oudi Recanati, provided that he sells his holdings in Israel Salt Industries.
Consequently, Nochi Dankner is expected to sell his stock in Salt Industries to the other branches of his family.
Other issues will apparently not be a barrier, according to the the response provided by the Supervisor of the Banks, Yitzhak Tal, to the group of buyers.
Tal did not preclude the option of Dankner's transferring his 17% holdings in Salt Industries to a "blind trust" (a trust established for the purpose of divestiture of all control and knowledge of assets) until a buyer is found, but clearly favored an immediate sale.
Nochi Dankner must dissociate from Salt Industries because the latter holds the controling interest in Bank Hapoalim, which extended $900 million in credit to IDB. Dankner cannot act as both lender and borrower.
Dankner is therefore expected to start negotiations with the other members of his family who have stock in the company. The Dankners agreed recently that should Nochi Dankner be required to sell his stock, they would buy the stock at a company valuation of $180 million. This is the valuation that was given in the deal that fell through for the sale of 33% in Salt Industries to Yossi Meiman's Ampal.
Although other problems apparently will not be an obstacle, this was not obviously clear. One such problem is that IDB has a 13% stake in Discount Bank (non-voting shares), while one of Ganden's partners, Yitzhak Manor, has stock in Union Bank (Igud). Under the law, no single entity may have significant holdings in two banks.
IDB is one of the largest holding companies in Israel. In addition to Discount Bank, it controls IDB Development which, in turn, holds stock in Clal Industries and Discount Investments