The banks that allegedly participated in the fees price-fixing case have rejected an offer by Antitrust Authority director general Ronit Kan for a consensual settlement as an alternative to a civil ruling.
Kan met representatives of Israel's top five banks - Bank Hapoalim (TASE: POLI; LSE:80OA), Bank Leumi (TASE: LUMI), Israel Discount Bank (TASE: DSCT), Mizrahi Tefahot Bank (TASE:MZTF), and First International Bank of Israel (TASE: FTIN1;FTIN5) - to discuss a settlement in the case. The settlement included an NIS 80 million fine against Bank Hapoalim, Bank Leumi, and Discount Bank; an NIS 30 million fine against First International Bank; and a NIS 20 million fine against Mizrahi Tefahot Bank.
Kan's ultimatum expired last week.
A source at one bank said, "The offer is not worthy of discussion."
Bank Hapoalim, Bank Leumi, and Discount Bank have rejected the offer, while First International Bank and Mizrahi Tefahot Bank have not yet notified Kan of their decision. The sources added that they are still in talks with her on the matter.
A knowledgeable source said, "Most likely, the Antitrust Authority will issue a decision, and no settlement will be reached. The banks will give a uniform response."
First International Bank and Mizrahi Tefahot Bank declined to comment on the report.
Published by Globes [online], Israel business news - www.globes-online.com - on February 8, 2009
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