Reply #58: Leumi Bank and GMAC[Gabriel Fund]

[Jambalaya]

GMAC and Gabriel Fund(Madoff feeder fund)
Tue., February 17, 2009 Shvat 23, 5769 | | Israel Time: 10:28 (EST+7)

web haaretz.com


Tshuva taking aim at Bank Leumi

By Eti Aflalo



It looks like real estate and energy baron Yitzhak Tshuva is now eyeing the banking sector.

Tshuva owns the controlling interest in the Delek group of companies, which encompasses real estate, energy and vehicle importing, and also owns the controlling interest in the Phoenix insurance company. Now Tshuva apparently has his eye on a 5% interest in Leumi, Israel's biggest bank in terms of market cap.


The 5% share at hand is currently owned by Ezra Merkin's hedge fund Gabriel Capital, and several local market players have been expressing interest.
In December 2008 Merkin said Gabriel would be selling its holdings and closing shop in the wake of the Bernard Madoff fraud. Since then, Leumi's top brass have been receiving calls about Gabriel's stake in the bank.

The timing isn't fortuitous, from Gabriel's perspective: Leumi shares lost 42% of their value last year.

The Cerberus-Gabriel Group bought 9.9% of Leumi about three years ago, when the government decided to privatize the bank. The group wanted the controlling stake, but found its bid foiled because of regulatory constraints. Ultimately, the group was forced to split the interest equally between the two hedge funds, Cerberus and Gabriel.

Another rumor is that whoever buys Gabriel's share of Leumi would try to buy Cerberus' stake, too. Forget it, say sources near Cerberus: It isn't selling. Not right now, anyway.

The Gabriel management might be just testing the waters, trying to find out what price it could get for its Leumi holding and the chances that the Bank of Israel would approve the sale.


If he really wants to buy both Gabriel's and Cerberus' holdings in Leumi, he'd have to sell part of Phoenix: The rules won't let him own more than 10% in more than one financial institution, including banks and insurance companies.

"There has been no decision to buy Leumi shares from Gabriel," was all a spokesman for Tshuva would say._______________________


PS> : Cerebus is the investment group that included John Snow and Dan Qualyle-the firm owns 51% of GMAC.

here's the link :

http://www.haaretz.com/hasen/spages/1064448.html