Bank Hapoalim board holds urgent meeting-report

TEL AVIV, June 1 | Mon Jun 1, 2009 6:30am EDT

TEL AVIV, June 1 (Reuters) - The board of directors of Bank Hapoalim (POLI.TA), Israel's second largest bank, has been summoned for an urgent meeting, TheMarker financial news website reported on Monday.

The website said it was likely Chairman Dan Dankner would announce his resignation at the meeting and that the board would approve a successor.

Hapoalim officials were not immediately available for comment.

Hapoalim has been battling with the banking regulator over its appointment of a new chief executive officer to replace Zvi Ziv, who announced in March he would resign due to differences of opinion with Dankner.

Hapoalim had appointed Deputy CEO Zion Kenan to replace Ziv but the banking regulator has forced Hapoalim to set up a committee to search for the most qualified candidate.

The regulator has also been seeking Dankner's resignation.

According to TheMarker, Ziv will inform the board at the meeting of his date of departure and Kenan will serve as acting CEO until a permanent replacement is found.

(Reporting by Tova Cohen; Editing by David Cowell)

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