Lack of labour deal leads FIMI to back out of El Al investment
JERUSALEM Oct 10 (Reuters) - The FIMI fund has called off an agreement to invest up to $75 million in El Al Israel Airlines after the Israeli flag carrier failed to reach a new labour contract with its workers.
FIMI, Israel's largest private investment fund, in April agreed to inject cash into El Al in return for up to 47 percent of the airline. FIMI was to form a controlling group in El Al with Knafaim Holdings, which owns 39 percent.
The deal was contingent on El Al reaching a new collective labour agreement aimed at allowing the carrier to deal with an increasingly competitive environment. It was supposed to close on July 31 but FIMI gave El Al an extension to close a labour deal.
"FIMI has informed El Al that it is cancelling the agreement to invest because the conditions had not been met," El Al said in a statement to the Tel Aviv Stock Exchange on Thursday.
Shares in El Al slumped 8.3 percent in afternoon trading. (Reporting by Steven Scheer)
- U.S. war veteran released by North Korea returns home |
- South Korea to make announcement on air zone; expansion is anticipated |
- South Korea expands air defense zone to partially overlap China's |
- Pro-Europe protesters gather for rally in Kiev
- Pennsylvania newlyweds "just wanted to murder someone together:" police