Clal will be buying IP shares. No comment on any specific plans Clal and Discount have for Scitex or whether there will be any managerial changes.”There is an expectation that already in 2000 the company will show recovery…”
Israel’s Discount Investment Corp and Clal Electronics said on Wednesday they would buy International Paper’s 13.2 percent stake in Scitex Corp for a total of $80 million. IP had invested in Scitex $210M several years ago. Under the terms of the deal, Clal and Discount, along with its wholly owned subsidiary PEC Israel Economic Corp, each agreed to buy 6.6 percent of Scitex for $40 million, or $14 per share. Scitex closed at $12-7/16 on the Nasadaq on Tuesday. Upon completion of the deal Clal will own 19.7 percent of Scitex while Discount and PEC will together own 19.9 percent, the companies said. He declined to comment on any specific plans Clal and Discount have for Scitex or to say whether there would be any managerial changes. Analysts said the deal was positive for Scitex and was expected to drive up its share price in coming days. “It is obvious that Clal believes that Scitex is on the right track and undervalued at the current price,” said an analyst familiar with the company.
