The government of Israel endorsed by a large 15:1 majority the recommendation of Vice Premier and Finance Minister Silvan Shalom to sell the state's equity in Bank Leumi le-Israel, Ltd., on the stock exchange and in the capital market.
The decision was based on recommendations included in the report of the Committee for Examination of Aspects of the Sale of Bank Leumi in the capital market, also known as the Marani Committee.
At the government meeting, Shalom said, "It's truly a strategic revolution. It marks a change for the better in government policy on privatizing the banks and it will make the Israeli capital market stronger and more efficient.”
“The privatization of Bank Leumi reflects the government's confidence in the capital market and is consistent with Western standards. The committee recommends the sale of six-seven percent of the equity for the time being. The rest of the equity shall be sold only after legislation enshrining the Committee's recommendations passes," he added.
Shalom also noted that he intends to issue the shares of Bank Leumi in the very near future, after the securities authority approves the prospectus. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
