Given Imaging Ltd. (GIVN:US) had its biggest advance in more than three months after a person with direct knowledge said Permira Holdings Ltd. is among private-equity firms considering to buy the company.
The shares of the maker of capsule-sized cameras jumped 3.9 percent, the most since Oct. 21, to 61.4 shekels at the close in Tel Aviv on four times the average three-month daily volume. Discount Investment Corp. (DISI), which holds a stake in Given, gained 3 percent to 13 shekels. Nochi Dankner’s IDB Holding Corp. (IDBH), which controls Discount Investment via a unit, rose 2.7 percent to 11.29 shekels. The TA-25 (TA-25) benchmark index added 0.4 percent.
Discount Investment is in talks to sell all or part of its 45.5 percent stake in Given, said the person, who has direct knowledge of the talks and asked not to be named because the discussions are private. Given, the Yokneam, Israel-based maker of a pill-sized camera to diagnose gastrointestinal illnesses, this month abandoned a plan to find a buyer for the whole company and said Discount Investment wanted to sell its stake in one block.
“Finding a buyer for Given would improve financing pressure within the IDB group of companies,” Daniel Rapoport, head of equity and derivatives at Bank Leumi Le-Israel Ltd. (LUMI) said today by phone. IDB has been selling assets, including a stake in Clal Industries & Investments Ltd., as it seeks to avoid default.
A spokeswoman for Permira in London declined to comment on Given, as did a spokeswoman for Tel Aviv-based Discount Investment.
IDB shares plunged 74 percent in 2012 as controlling shareholder Dankner sold assets and raised funds to try to meet debt commitments. Standard & Poor’s Maalot in December cut the holding company’s debt rating to default.
IDB sold a unit of Tel Aviv-based Clal Insurance Enterprises Holdings Ltd. (CLIS) to Warren Buffett’s Berkshire Hathaway (B:US) for $221 million in August. Argentinian businessman Eduardo Elsztain agreed in September to pay $25 million for 10 percent of IDB’s parent company Ganden Holdings Ltd., with the option of investing another $75 million.
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