Rozenberg offer for control of Israel's El Al may struggle to win support of board: source

Eli Rozenberg’s bid for a controlling stake in El Al Israel Airlines is below the price that can be obtained in a public share offering and may struggle to gain board support, said a source close to the board who declined to be named. Last month Rozenberg, a US citizen now resident in Israel, offered to funnel $75m into the airline in return for a 45% stake. Rozenberg is the son of Kenny Rozenberg, chief executive of New York-based nursing home chain Centers Health Care. “From my talks with members of the board, most are against the proposal,” the source said. “Shareholders are opposed to it.” The source said Rozenberg’s offer was worth only 0.63 shekel ($0.1851) a share, below the 0.71 shekel market price. “It’s better to offer shares to the public at 0.70 shekel,” the source told Reuters. “The government would buy shares that aren’t bought at 0.67, so there’s a safety net.” El Al’s board has yet to vote on Rozenberg’s offer, which would also need shareholders’ approval. “I don’t see the board taking a decision in favour of this deal,” said Ilan Arad, vice president of investment at Israeli investment house Yetsira. Even an improved offer should not be accepted, he said, because transfer of control will not resolve much deeper problems the airline faces, such as not being able to fly on the Jewish Sabbath.<br/>