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The expected sale of Eliahu Insurance Company's life insurancebusiness to Psagot Investment House has fallen through, afterEliahu and Psagot couldn't agree on a timetable for the deal. Shlomo Eliahu has been waiting for months for approval from OdedSarig, capital markets and insurance commissioner at the FinanceMinistry, to purchase the controlling stake in Migdal Insurance& Financial Holdings from Italy's Assicurazioni Generali. But Sarig would not give the deal a green light until Eliahu soldhis private company's life insurance portfolio. The law prohibitsmergers or acquisitions of long-term savings portfolios involving acompany with more than 15% market share, which applies to Migdal. Psagot, which expressed willingness to pay more than NIS 300million for the portfolio, was a prime candidate for the deal, asit doesn't currently operate in this field and could take over thebusiness as a separate unit, including the entire staff. The only catch was that Psagot, new to such operations, needed timeto complete a thorough review of the transaction. Sarig, however, insisted that the sale be completed before givingEliahu his blessing on the Migdal purchase. The anticipated deal blew up on Tuesday, during a meeting betweenEliahu and Psagot brass. Under pressure from the treasury, Eliahutried to rush the deal through, but Psagot insisted on completingits review first. The other insurance companies, among whom Eliahu will now try topeddle his life insurance portfolio, unlike Psagot, are familiarwith the business and can close a deal within days withoutconducting a due diligence. The eventual buyer, however, will likely integrate the portfoliointo its own operations, resulting in staff layoffs. In addition,Psagot has missed an opportunity for a smooth entry into the arena,which will now become even more concentrated with one less player. Generali agreed in March to sell its 69% interest in Migdal,Israel's biggest insurance company, to Eliahu for NIS 4.2 billionin cash. Migdal manages assets of some NIS 135 billion. The Finance Ministry said the law on this matter is explicit andthe supervisor of capital markets and insurance is actingaccordingly. The e-commerce company in China offers quality products such as LED Recess Lighting , China Fluorescent Tube LED Replacement, and more. For more , please visit LED Down Lighters today!
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