Skip to main content

Israel's El Al Airlines pulls bid to buy control of credit card firm Isracard

1 min Mena Today

Israeli flag carrier El Al Airlines has withdrawn its bid to buy Israel's largest credit card company, it said on Wednesday, citing its inability to meet requirements by Thursday's deadline.

Isracard's shares fell 1.6% in afternoon Tel Aviv trading, valuing it at 2.95 billion shekels. El Al's shares slid 4% © Mena Today 

Isracard's shares fell 1.6% in afternoon Tel Aviv trading, valuing it at 2.95 billion shekels. El Al's shares slid 4% © Mena Today 

Israeli flag carrier El Al Airlines has withdrawn its bid to buy Israel's largest credit card company, it said on Wednesday, citing its inability to meet requirements by Thursday's deadline.

El Al made an offer on Oct. 16 to acquire a 45% stake in Isracard - which does not have a controlling stakeholder - in a deal valuing the credit card firm at 3.1 billion shekels ($834.5 million).

Isracard's shares fell 1.6% in afternoon Tel Aviv trading, valuing it at 2.95 billion shekels. El Al's shares slid 4%.

The bid comes as El Al's profit has soared, a result of its near-monopoly status and high airfares with many foreign carriers having cancelled flights amid the war in Gaza and escalating violence in the region.

"Due to a short time frame made by Isracard and in view of a decline in El Al's request for an extension, El Al could not complete the checks required for investment in the company," the airline said.

"Under these circumstances, and out of a commitment to a thorough and responsible examination of the investment, El Al decided to withdraw its offer."

Isracard did not immediately respond to a request for comment.

Insurance firm Menora Mivtachim is also in talks to buy a stake in Isracard, with a deadline of Nov. 3.

El Al said it would continue to examine business opportunities compatible with its strategic plan to expand its portfolio of products and services, including in the field of credit and finance.

($1 = 3.7148 shekels)

Reporting by Steven Scheer

Tags

Related

Iran

Trump to discuss Gaza, Iran with Netanyahu at Monday meeting

U.S. President Donald Trump said on Tuesday he will discuss the situations in Gaza and Iran when he meets with Israeli Prime Minister Benjamin Netanyahu at the White House next week, adding that he hopes to achieve a ceasefire in Gaza soon.

Gaza

Israeli officials to hold ceasefire talks in Washington

Israeli planes and tanks struck heavily in north and south Gaza on Tuesday, destroying clusters of homes, while Israeli Prime Minister Benjamin Netanyahu's confidant was in Washington, expected to discuss a possible ceasefire.

Subscribe to our newsletter

Mena banner 4

To make this website run properly and to improve your experience, we use cookies. For more detailed information, please check our Cookie Policy.

  • Necessary cookies enable core functionality. The website cannot function properly without these cookies, and can only be disabled by changing your browser preferences.