5th Jul 2007 09:56
Leumi International Investments NV05 July 2007 BANK LEUMI LE-ISRAEL B.M. (GUARANTOR - GUARANTEED EURO MEDIUM TERM NOTE PROGRAMME OF LEUMI INTERNATIONAL INVESTMENTS N.V.) Translation of Immediate Report Bank Leumi le-Israel B.M. Registration No. 520018078 Securities of the Corporation are listed on The Tel Aviv Stock Exchange Abbreviated Name: Leumi Leumi House, 34 Yehuda Halevi Street, Tel Aviv 65546 Phone: + 972 3 5148111, + 972 3 5149419; Facsimile: + 972 3 5149732 Electronic Mail: [email protected] 5 July 2007 To: Israel Securities Authority (www.isa.gov.il) The Tel Aviv Stock Exchange (www.tase.co.il) Immediate Report regarding an Event or Matter falling outside the Ordinary Course of Business of the Corporation Pursuant to Regulation 36(a) of the Securities (Periodic and Immediate Reports) Regulations, 1970 Nature of the Event: Conglomerates Bank Leumi le-Israel B.M. (the "Bank") announces as follows: Pursuant to the financial statements of Paz Oil Company Ltd. ("Paz") for thefirst quarter of 2007, wherein new accounting standards were implemented, Paz'sshareholders' equity has exceeded the minimum capital amount for the definitionof a conglomerate (real (non-banking) holding corporation). Prior to the publication of the said financial statements, discussions were heldbetween the Bank and the Bank of Israel with regard to the interpretation of theBanking (Licensing) Law, 1981 relating to the definition of Paz as aconglomerate. Further to these discussions, the Bank of Israel notified the Bankyesterday evening that it does not accept the Bank's interpretation that theenergy sector constitutes one sector of the economy, and as a result Paz is aconglomerate as its shareholders' equity exceeds the amount of capital for thedefinition of a conglomerate. As a result, and in accordance with the Bank of Israel's notice of yesterdayevening, the Bank is required to sell its holdings in one of the conglomerates,Paz or the Israel Corporation Ltd. by 30 June 2009. The Bank has not yet decidedwhich of its holdings will be sold (i.e. its holdings in Paz or the IsraelCorporation). Date and time at which the corporation first became aware of the event ormatter: 4 July 2007 at 17:00.______________________________________________________________Name of Electronic Reporter: Nomi Sandhaus, Position: Senior Head of Sector,Legal Counsel POB 2 Tel Aviv 61000, Phone: + 972 3 5148624, Facsimile: + 972 3 5147396, Electronic Mail: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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