Israeli flag carrier El Al Airlines has withdrawn its bid to buy Israel's largest credit card company, it said on Wednesday, citing its inability to meet requirements by Thursday's deadline.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Israeli flag carrier El Al Airlines has withdrawn its bid to buy Israel's largest credit card company, it said on Wednesday, citing its inability to meet requirements by Thursday's deadline.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