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Israel's Leumi gets extension to sell Paz stake

Wed Jun 3, 2009 5:50am EDT

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JERUSALEM, June 3 (Reuters) - Bank Leumi (LUMI.TA) said on Wednesday it received an 18 month extension from Israeli regulators to sell its holdings in Paz Oil Co (PZOL.TA).

Leumi, Israel's largest bank, received permission from the Bank of Israel to sell its 15.7 percent stake in Paz, Israel's largest distributor of refined oil products, by Dec 30, 2010 instead of June 30, 2009, it said in a statement.

Leumi, though, must transfer its shares in Paz to a trustee by the end of June.

The Bank of Israel in 2007 forced Leumi to sell its Paz stake since banks are not allowed to hold significant shares in more than one conglomerate. Paz is deemed a conglomerate and Leumi also owns an 18 percent stake in holding company Israel Corp (ILCO.TA).

Leumi previously said it would sell its Paz stake to comply but has received a number of extensions to do so.

(Reporting by Steven Scheer; editing by Simon Jessop)



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