Dankner sells control of Shufersal
IDB chairman gives up one of his key holdings in light of social protest, concentration committee recommendations
Calcalist has learned that Dankner has agreed to sell his shares in the company to the Bronfman Fisher Group and Leo Noe.
According to estimates, the sale was prompted by the social protest against the cost of living and food prices in Israel, as well as by the concentration committee recommendations, which threaten to force Israeli tycoons to sell some of their assets.
If the deal materializes, businessman Matthew Bronfman may be forced to sell his shares in Discount Bank as part of the implementation of the concentration committee recommendations. The sale will also turn Bronfman into one of the key elements in Israel's retail market, as he also controls IKEA Israel.
Protest leader to take action
Shufersal's market cap currently stands at NIS 3.57 billion ($970 million), with the company's share falling 25.4% since the beginning of the year. The Discount Investment Corporation, controlled by Dankner, holds 46% of the Shufersal shares, while Bronfman and Fisher's Isralom holds another 18.6%.
Dankner gained control of Shufersal upon completing the acquisition of IDB in May 2002. Since then, the Shufersal share has climbed 88% - an annual return of some 8.4%.
Itzik Alrov, who initiated the cottage cheese boycott, said in response to the move that he would consider turning to the antitrust commissioner.
"The antitrust commissioner should take this opportunity to demand, as part of the deal, Shufersal's dissolution into several elements rather than selling it as one piece, so as to avoid a situation in which one chain controls a market share of nearly 40%."
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