18 November 2004 – By Shlomi Sheffer Translation of an article in “Yediot”
The Reuben Brothers made most of their fortune in business in Russia – In the banking sector doubts were expressed regarding the Brothers’ ability to receive an authorisation to contend for the bank.
Yesterday the Bank of Israel authorised the Rothshild Bank Group to enter the information rooms of the Discount Bank. The group consists of Jewish businessmen from Europe, including the Reuben Brothers, who made most of their fortune during the post-privatisation period in Russia, in an aluminium business with Lev Chernoy, a brother of Michael.
When the Reuben brothers announced their participation in the bid, the banking sector expressed doubts regarding the ability of the Rothschilds Bank Group to succeed strict examinations of the Bank of Israel, mainly because of the Brother’s affairs in Russia. Therefore, an authorisation provided by the Bank of Israel at the end of the first stage of an in-depth examination is certainly a meaningful milestone for the group.
The Rothschild Bank Group did not waste any time and immediately commenced the due diligence by means of a team established especially for that purpose, and headed by Prof. Yoram Eden, who specialises in valuations of banks and has recently performed a valuation of the First International Bank for the Discount Bank. Eden will perform a valuation of Discount Bank for the group.
In addition, “Yediot” found out, that among the members of the team are CPA Doron Levy, a former Income Tax Commisioner (from the CPA firm of Doron Levy & Co.), Amit Biel (from Rothschild Investment House) and lawyers and CPAs from leading firms in Isreal and New York.
The Rothchilds Bank Group’s spokesman announced, in response, that the group does not comment on issues related to the tender process. The group consists of Jewish businessmen running widespread affairs around the world in the areas of banking, real estate and investments. The Rothschild Bank is the group’s advisor throughout the sale process. The group is represented in Isreal by the law form of E.S. Shimron, I. Molho, Persky & Co.
Two other consortia, which have already received an authorisation to enter the information rooms of Discount, are Daniel Strauss Group and Matthew Bronfman Group.