York Capital to buy 4 pct of Israel's Bank Hapoalim

JERUSALEM, March 26 (Reuters) - U.S. hedge fund York Capital will buy a 4 percent stake in Bank Hapoalim (POLI.TA) for 735 million shekels ($210 million), Hapoalim said on Wednesday.

Hapoalim, one of Israel's largest banks, said its board of directors also approved the allocation of options for 7.5 million shares to be exercised in 12 and 24 months at a share price of 19 shekels and 22 shekels, respectively.

"The combination of value, administrative talent and market leadership represents a very interesting opportunity for us and our investors," Jeremy Blank, a managing director at York Capital, said in a statement.

Hapoalim chairman Dani Dankner said the allocation of shares to York was part of the bank's strategy to expand its operations in Israel and abroad.

Shares of Hapoalim were flat at 14.50 shekels in early afternoon trading in Tel Aviv.

($1 = 3.50 shekels)

(Reporting by Steven Scheer; Editing by Quentin Bryar)