Leumi board to be set this wk after shareholder vote

TEL AVIV, June 2 (Reuters) - Bank Leumi (LUMI.TA) expects by Thursday morning to announce the five new members of its board, one of whom will become the chairman of Israel's largest bank.

Leumi shareholders began voting on a new board from a pool of 25 candidates in a secret ballot on Wednesday, as the government prepares to sell its remaining 11.5 percent stake in the bank. [ID:nLDE63R1FC]

The new chairman is likely to be named next week at the earliest next week, after consultations with Finance Minister Yuval Steinitz and Supervisor of Banks Roni Hizkiyahu.

David Brodet, a former director-general of the Finance Ministry and ex-chairman of Mizrahi-Tefahot Bank (MZTF.TA), is seen as the most likely candidate to become chairman. Phoenix Insurance (PHOE1.TA) chairman Ehud Shapira is also considered as a strong candidate.

"We cannot exaggerate the harmony that existed between the board and management during Raff's tenure," CEO Galia Maor said at the outset of the meeting, referring to outgoing chairman Eitan Raff, who has served in the position for 15 years.

Leumi's largest private shareholder Shlomo Eliahu, who holds 9.59 percent, boycotted the meeting after his bid to delay the vote until after the sale of the government's stake was rejected. Eliahu is seeking to put together a group of investors to form a controlling stake in Leumi. [ID:nLDE64M02V]

He has said the bank needs time to deal with expected changes in control.

The Finance Ministry plans to sell its holdings in Leumi this year. (Reporting by Tova Cohen; Editing by Hans Peters)