Leumi to take over Eurom this week

Israeli bank Leumi will sign the contract to take over the controlling interests in Eurom Bank at the end of this week, after talks that lasted for several months in which Leumi was the only candidate left in the Eurom takeover. The value of the deal will not be publicly revealed, though it could stand at 60 to 70 million euros and could be different from the price at which the shares will be transferred through the RASDAQ. Leumi is the second-largest banking company in Israel, with total assets worth approximately 50bn euros. Eurom Bank is held by Kolal BV, which is controlled by Israeli businessman Fredi Robinson. Kolal owns 89.6% in Eurom. The deal is expected to be performed through the direct sale of the stake held by Kolal, according to the Eurom Bank president, Benesh Avital, not through the sale of Kolal itself. According to information published a few months ago by the Israeli daily Maariv, the talks involved a figure of 80 million dollars (66 million euros) – three times the accounting value of the bank. The bank”s equity capital had amounted to 74 million RON by mid year (21.1 million euros). ZF