TEL AVIV Dec 2 Private equity firm KKR & Co
has halted talks to extend a substantial loan to IDB
Holding after the Israeli holding company's chairman
was questioned on suspicion of securities fraud.
IDB said in a statement on Sunday it planned to pursue a
similar type of deal with other financial entities that had
IDB's chairman, Nochi Dankner, was questioned by the Israel
Securities Authority (ISA) last week regarding a share offering
in February and released under restrictive conditions.
Dankner said he respected the investigation and had full
trust in the ISA. "I am confident it will quickly become clear
that all my actions on every matter were and always are legal,"
In October IDB said it was considering acquiring subsidiary
Koor Industries to simplify the complex, pyramid-like
structure of the debt-ridden conglomerate. It said this would be
done in conjunction with receipt of a substantial loan from a
foreign financial entity, identified by Israeli media as KKR.
IDB is one of Israel's largest holding companies and its
various units hold key stakes in Cellcom, Israel's
largest mobile phone operator, Super-Sol, the country's
biggest supermarket chain, and real estate developer Property &
Koor owns 2.4 percent of Credit Suisse and 40
percent of MA Industries, the world's biggest maker of generic
crop protection products.