IDB chairman to step down as restructuring nears completion

May 07, 2014 - 5:51:04 pm

JERUSALEM: Aharon Fogel, chairman of Israeli conglomerate IDB Group, said on Wednesday he would step down once a corporate restructuring was completed.

Fogel replaced Nochi Dankner, once one of Israel's most powerful businessmen, in January after Dankner lost control of IDB during a debt restructuring process and the company shifted control to Argentinian businessman Eduardo Elsztain and his Israeli partner Moti Ben-Moshe.

"With the execution of the IDB (debt) arrangement a strong corporation has been established that incorporates strong and well managed companies," Fogel said. "IDB can now go back to focusing on business development instead of financial defence."

He did not give a reason as to why he was stepping down after just four months but his spokesman said Fogel, a former director-general of the Finance Ministry, told the new owners he wanted to try something else. The spokesman added that completion of the deal could be as early as today.

Until last September, Fogel had been chairman of Migdal Insurance and Financial Holdings for 13 years.

IDB is one of 10 large business groups that control about 30 percent of the market value of Israel's public companies.

IDB controls Cellcom, Israel's biggest mobile phone operator, and leading supermarket chain Super-Sol, Clal Insurance and many other companies. (Reuters)