Nochi Dankner's "Plan B": Considered Salt Industries takeover

Nochi Dankner, who could acquire control of the IDB Holding Corporation (TASE: IDBH ) concern soon, had conducted talks until recently on acquiring control in Israel Salt Industries (TASE: SALT ) from the rest of the Dankner family. Salt holds 11.6% of Bank Hapoalim(TASE: POLI ), part of the controlling stake, and the talks centered on a $200-220 million valuation, twice the company's market cap, TheMarker has learned.

However, when the IDB- Kardan (TASE: KRDN ) deal collapsed, Dankner didn't pass on the opportunity to enter Israel's biggest holding company. Should Dankner and the Recanatis sign a deal on IDB, Dankner would have to sell his holdings in Salt Industries and resign from his positions at Bank Hapoalim, as IDB has taken billions of shekels in credit from the bank.

The "Yitzhak Dankner Group", named after Nochi's father, holds 17.5% of Salt Industries, worth NIS 87 million at Salt's current market cap. In the event Dankner signs the IDB deal, the group would have to sell its stake in Salt Industries.

TheMarker has also learned that in Q1 2002, during the wave of capital raising that swept the Tel Aviv Stock Exchange, Salt Industries management considered issuing convertible bonds. The plan included a mechanism that would have granted investors the option to acquire a small part of the company's Bank Hapoalim shares. The planned issue was not conducted, but apparently the company plans to carry it out when market conditions allow.