Israel government authority to recommend El Al control permit for Rozenberg

Israel's Government Companies Authority said it would recommend allowing Eli Rozenberg to buy control of cash-strapped El Al Israel Airlines. Rozenberg last month offered to funnel $75m into the airline in return for a 45% stake. He is the son of American businessman Kenny Rozenberg, who is CEO of New York-based nursing home chain Centers Health Care. The authority said it would allow control of Israel's flag carrier with a stake of over 40% conditioned upon proof of Rozenberg's Israeli citizenship or residency. Israel would retain a golden share. Israel's finance and transport ministers also need to approve Rozenberg becoming the controlling shareholder. El Al's board had agreed to a bailout that could put the carrier back under state ownership after the coronavirus crisis pushed it to the verge of bankruptcy. The government has offered to back $250m in bank loans while El Al must issue $150m in shares, which the state will buy if no one else does. The carrier's unions have already agreed to a significant cost-cutting measures.<br/>