Israel grants control of El Al to young buyer over board objections

Israel's privatisation body on Friday granted control of El Al Airlines ELAL.TA to religious student Eli Rozenberg, putting faith in the 27-year-old's plan to turn around the cash-strapped flag carrier. Rozenberg’s purchase of a controlling stake is opposed by the board of El Al, which alleges he is a frontman for his non-Israeli father. Rozenberg’s newly created Kanfei Nesharim Aviation bought $107m worth of shares in an offering last month that gave him a nearly 43% stake in Israel’s cash-strapped flag carrier. Kanfei Nesharim received a control permit for the airline from the Government Companies Authority on Friday, signed by senior government ministers, including defence minister Benny Gantz and finance minister Israel Katz, the company said. Reiterating past promises for a board shake-up, Kanfei Nesharim said it would “contact El Al immediately with the aim of replacing the company’s board of directors and allowing it to begin managing the company while setting priorities for recovery.” The airline’s board last week asked government ministers to reconsider giving Rozenberg control, arguing that he represents the interests of his father Kenny Rozenberg, chief executive of New York-based nursing home chain Centers Health Care.<br/>