In a notice to the Tel Aviv Stock Exchange (TASE), B. Gaon Holdings Ltd. (TASE: GAON) confirmed that it was in negotiations to merge subsidiary Gaon Investment House Ltd. with Meitav Investment House Ltd. and companies of Prisma Investment House Ltd. Gaon added that the negotiations would likely last for several weeks, and that there was no binding agreement at this time.
As a public company, Gaon Holdings is required to disclose the negotiations. As private companies, neither Meitav nor Prisma have this obligation.
Markstone Capital Partners Group LLC managing director Ron Lubash reportedly wants to consolidate the assets of Prisma, which Markstone owns, with Meitav and Gaon Investment House, to create an entity with more than NIS 25 billion in assets under management. The ownership of the consolidate company that will manage short-term assets will reportedly be as follows: Prisma and Meitav - 40% each, and Gaon - 20%.
"Globes" believes that this company will carry Meitav's brand, although it will initially also carry Prisma's name. Candidates for CEO of the consolidated company include Prisma CEO Yuval Gavish, Meitav's Avner Stepak, or Gaon Investment House CEO Gady Greenstein, and its chairman will be Meitav chairman Zvi Stepak.
Last week, sources inform ''Globes'' that Prisma would be broken up. In the transaction talks confirmed by Gaon, Prisma's mutual funds and exchange traded funds (ETFs) will reportedly be merged with Meitav and Gaon Investment House, which will create an entity with NIS 13.2 billion in mutual fund assets, NIS 3 billion in ETFs, and also managed portfolio operations. Prisma is also reportedly in advanced talks to sell its provident funds to Psagot Investment House Ltd.
Both Meitav and Gaon Investment House have their own provident funds.
Published by Globes [online], Israel business news - www.globes-online.com - on December 31, 2008
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