Bloomberg News

Elbit Imaging Soars Most Since January 2009 on Bond Buyback

October 25, 2011

(Updates with closing share price in second paragraph.)

Oct. 25 (Bloomberg) -- Elbit Imaging Ltd. surged the most since January 2009 after the investor in real estate and medical companies said it repurchased 67.6 million shekels ($18.5 million) of bonds under a buyback program started in May.

The shares jumped 16 percent to 12.90 shekels at the 4:30 p.m. close in Tel Aviv. The stock has soared 36 percent this week, giving the Tel Aviv-based company a market value of 329 million shekels.

The repurchases “indicate the faith of the company in its bonds,” Amir Arad, an analyst at Excellence Nessuah Investments Ltd. in Ramat Gan, Israel, said by telephone.

The shares have tumbled 63 percent since Calcalist reported on May 23 that controlling shareholder Mordechay Zisser was having problems making debt payments. Globes reported today that Zisser has met with institutional investors in the company in recent days.

Elbit declined to comment in a statement read by phone.

--Editors: Susan Lerner, Peter Branton

To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus