Koor Sells ILS918 Million In Credit Suisse Shares At A Loss
10 August 2011 - 8:08PM
Dow Jones News
Israeli holding company Koor Industries Ltd. (KOR.TV) said
Wednesday that it has sold 918 million shekels ($261.5 million)
worth of shares in Credit Suisse (CS) in order to reduce credit
lines taken to buy those shares.
Koor said selling the shares reduced its debt-to-guarantee
ratios with Citigroup Inc. (C) and Morgan Stanley (MS), the two
banks it borrowed money from to help finance its purchase of Credit
Suisse shares. Koor said it sold the shares at a loss of ILS268
million shekels, which will be reflected in its third-quarter
financial results.
On Tuesday, Koor said that it will recognize a loss of ILS1.8
billion in its second-quarter earnings due to a decline in price of
its stake in Credit Suissse. Koor has been buying and selling
shares in Credit Suisse since 2008.
At 0916 GMT, shares of Koor were down ILS1.56, or 3.6%, at
ILS41.65, in a lower Tel Aviv market.
-By Sara Toth Stub, Contributing to Dow Jones Newswires,
saratoth@gmail.com