Bank of Jerusalem Bids for Dexia

The Bank of Jerusalem has bid 515 million shekels ($150 million) for the Israeli unit of Franco-Belgian retail bank Dexia SA, the company said Tuesday. Bank of Jerusalem plans to turn Dexia Israel into a wholly owned subsidiary, Reuters reported.

(Reuters) – The Israeli unit of Franco-Belgian retail bank Dexia SA said on Tuesday it had recieved a buyout offer from the Bank of Jerusalem for 515 million shekels ($150 million).

Bank of Jerusalem plans to turn Dexia Israel into a wholly owned subsidiary, Dexia said in a statement to the Tel Aviv Stock Exchange.

It said Bank of Jerusalem has offered to pay 75 percent of the amount in cash and the rest in Bank of Jerusalem shares.

The final amount is subject to the outcome of negotiations, the bank said.

Dexia SA has said it planned to sell its Israel unit by the end of the summer.

The Globes financial daily said Dexia Israel has a 38 percent share of the municipal credit market, which accounts for 88 percent of the bank’s lending.

(Reporting by Steven Scheer; Editing by Louise Heavens)