Arkia talking to other buyers as El Al's exclusivity ends

The merger deal between El Al Israel Airlines and Arkia Israeli Airlines is getting further away. The merger is still being examined by El Al, as the company stated in a notification to the Tel Aviv Stock Exchange today, but sources say that Arkia is talking to alternative buyers on taking over the company and replacing the current controlling shareholders, brothers Joe, Raffi and Avi Nakash, who hold 70% of the shares in the company. The remaining 30% are held by Arkia's employees. Up to now, Arkia has been barred from negotiating with other buyers by the exclusivity it gave to El Al. The period of exclusivity ends on June 29, and Arkia does not wish to extend it. Potential buyers can now obtain details about the company and start a due diligence process while negotiating. Another possibility that Arkia is examining is a public offering, like that of rival airline Israir, which recently raised NIS 25m at a valuation of NIS 250m.<br/>