Rosenberg raises stakes for El Al, Sapir recruits economist

Eli Rosenberg, the first of three individuals to express an interest in buying El Al Israel Airlines (LY, Tel Aviv Ben Gurion) and who has succeeded in obtaining a permit to acquire control of the carrier, has raised his bid, the business newspapers Globes and Calcalist reported. Having initially offered USD75 million, the son of New York-based businessman Kenny Rosenberg has now put forward USD101 million for a controlling 45% stake in the airline, he said in a letter to the Government Companies Authority and Ministry of Finance on August 24. He is prepared, he indicated, to buy shares worth that amount at the forthcoming USD150 million public offering of El Al shares on the Tel Aviv Stock Exchange, provided that it gives him control of the company. The deadline for the offering is August 31. The improved offer is based on a price per share of ILS0.67 shekels (USD0.20), the level at which the state plans to buy any shares that the public does not, according to Globes. Besides the equity sale, the government’s package to save El Al includes a 75% state guarantee for USD250 million in bank loans, and, after the offering, ILS230 million (USD68 million) in surplus cash from the company’s employee pension and compensation fund. Eli Rosenberg finally met the El Al board of directors last week following a series of acrimonious letters between the lawyers of both parties. As previously reported, the two other would-be buyers who have applied to the companies authority for an acquisition permit, but have yet to receive one, are British-Israeli real estate entrepreneur Meir Gurvitz and Russian-Israeli tourism and telecomms businessman David Sapir. Meanwhile, Globes reported earlier this week that Sapir had recruited Eyal Gabay as his senior advisor. An economist, Gabay was director general of the Prime Minister’s Office from 2009 to 2011 under Benjamin Netanyahu, as well as director of the Government Companies Authority from 2002 until 2007 – during the privatisation of El Al.