JERUSALEM/TEL AVIV, Sept 2 (Reuters) – Israel’s MA Industries (MAIN.TA: Quote, Profile, Research, Stock Buzz) ended talks to acquire U.S. firm Albaugh Inc for about $1 billion, blaming findings during due diligence, sending its shares lower.

MA said on Thursday it halted negotiations “due to various findings revealed to the company during due diligence which were a substantial deviation from the data upon which the company had based its decision to sign a letter of intent.”

MA said in June it planned to buy Albaugh to boost its presence in the Americas and cement its position as the world’s biggest maker of generic crop protection chemicals.

MA, also known as Makhteshim Agan, had signed a letter of intent to pay $340 million in cash, $455 million in seven-year promissory notes and 59 million of its own shares — the latter being equivalent to a 12 percent stake in MA worth $211 million.

Its stock was down 1.4 percent to 13.07 shekels at 1151 GMT.

It was not immediately clear what MA would do next, although analysts expect it to focus on a corporate restructuring.

Analysts said some investors were relieved MA did not buy Albaugh just for the sake of making a deal, which was opposed by many investors over what they said was the high price.

JERUSALEM, Aug 30 (Reuters) – Partner Communications (PTNR.TA: Quote, Profile, Research, Stock Buzz) reported a small rise in quarterly profit as a jump in financial expenses offset higher revenues from an increase in its subscriber base.

Partner (PTNR.O: Quote, Profile, Research, Stock Buzz), Israel’s second-largest mobile phone operator, also said it was preparing for regulatory changes that would likely hurt revenue and profit. It has estimated a hit of as much as 30 million shekels a month to net income.

The Communications Ministry is weighing a plan to slash the rate operators charge each other to connect calls from 0.25 shekel a minute to as low as 0.04 shekel. Partner and its peers have strongly objected.

Partner said on Monday that while the plan would hit profit it was not altering its 2010 outlook.

An announcement by the ministry is expected within days.

“Regarding the impact of the regulatory changes in 2011 and beyond, Partner is in the process of determining the most appropriate courses of action to take in order to address the impact of these changes,” Chief Financial Officer Emanuel Avner said in a statement.

Partner, which operates under the Orange brand, said some of the negative impact on its mobile business might be mitigated by new revenue generated through the fixed-line sector.

JERUSALEM, Aug 24 (Reuters) – Israeli drug company Kamada (KMDA.TA: Quote, Profile, Research, Stock Buzz) signed a distribution deal for one of its key treatments on Tuesday, easing concerns about the product’s effectiveness and sending its shares up more than 16 percent.

Baxter International (BAX.N: Quote, Profile, Research, Stock Buzz) will market Kamada’s Glassia – a drug that treats genetic lung-damaging disorder alpha-1 antitrypsin deficiency (AATD) — in the United States, Canada, Australia and New Zealand, the companies said on Tuesday.

The deal comes six weeks after Kamada won U.S. regulatory approval for the liquid version of Glassia and a subsequent study that questioned the benefit of the high-priced drug.

“The distribution agreement and new partnership with one of the largest plasma players in the world is good news for investors and the company’s shares,” said Clal Finance anlayst Yuval Ben Zeev, who rates Kamada as a “buy”.

Baxter, whose shares were down 2.8 percent at $43.50, will also gain access to Kamada’s technology of the liquid AAT drug.

Under terms of the deal, Kamada will receive milestone payments of $45 million including an upfront payment of $20 million. Kamada will also be eligible to receive up to another $25 million after meeting certain milestones.

Baxter has committed to buy minimum quantities of Glassia totalling around $60 million but that could reach $110 million during the first five years of the agreement. Kamada will also receive royalty payments of at least $5 million a year on net sales of the product produced by Baxter.

JERUSALEM, Aug 23 (Reuters) – The Bank of Israel held its key short-term lending rate ILINR=ECI at 1.75 percent on Monday, citing signs of easing inflation pressures and uncertainty regarding the pace of the economic recovery.

A month ago, the central bank raised its key rate by a quarter-point in a surprise move aimed at curbing fast-rising housing prices. It was the fifth rise over the past year.

But analysts were nearly unanimous that the Bank of Israel would keep its rate unchanged on Monday. A Reuters poll found 17 of 18 economists had forecast no move, given the growing doubts over the recovery in the United States and elsewhere.

As expected by economists, compared to last month’s statement the Bank of Israel’s statement focused more on moderating inflation pressures than the need to prevent a housing bubble, though it said it would keep a “close watch” on developments in the housing market. [ID:nLDE67M1I5]

“The central bank sounds more pessimistic regarding the global economy, where the weakening of the United States economy casts a thick shadow on Israeli exports in the coming year,” said Rafi Gozlan, an economist at Leader Capital Markets.

The shekel was little changed at 3.8050 per dollar in late trading after the decision.

Annual inflation fell to 1.8 percent in July from 2.4 percent in June — well within an official target of 1-3 percent – largely due to base effects stemming from tax hikes last year. The central bank noted that inflation eased despite a 5.6 percent annual jump in the housing index.

JERUSALEM (Reuters) – BHP Billiton’s bid to take over Potash Corp has already pepped up shares in rival potash companies and could prove a longer-term positive for the sector, according to industry watchers.

BHP went hostile with its $39 billion bid on Wednesday in a move which could lead to higher company valuations across the board, as well as underpinning the price of fertilizers of which potash is a constituent.

Potash prices fell over the past year to $350-$390 per ton but BHP’s interest in Potash Corp is at least a sign of confidence in future pricing of its key product.

“Consolidation in general is good because there is more power for suppliers,” said Limor Gruber, an analyst at brokerage Psagot in Tel Aviv.

“Pricing for the sector is going up. Obviously, it will need to be justified by rising prices of fertilizer,” she said. “But it values potash activity in a new way for now.”

Eight companies control more than 80 percent of global supply: Mosaic Co, Agrium Inc, K+S, Uralkali, Silvinit, Belaruskali, and Israel Chemicals (ICL) as well as Potash Corp.

CHANGE OF DYNAMICS

JERUSALEM, Aug 17 (Reuters) – Defence contractor Elbit Systems (ESLT.TA: Quote, Profile, Research, Stock Buzz) (ESLT.O: Quote, Profile, Research, Stock Buzz) reported lower quarterly profit that missed estimates, hurt by lower military spending in Europe, sending its shares down 4.5 percent.

Investors had been used to the Israel’s largest publically traded defence firm delivering solid results for a number of years but Elbit, a defence electronics specialist, is now expected to post a lower growth rate in 2010 than last year.

“It seems like going back to a growth pattern will be difficult,” said Limor Gruber, an analyst at the Psagot brokerage, adding she foresees a revenue dip of as much as 6 percent this year.

Already down 19 percent so far in 2010, Elbit’s shares were down 4.5 percent at 193 shekels in afternoon trading in Tel Aviv, lagging gains of 1.3 percent on the broader bourse.

Elbit cited lower sales of command and control systems in Israel and Europe as the main reason revenue for a 17 percent drop in quarterly revenue, with a 37 precent drop from Europe.

“Increasing competition from global players and the declining ability of Elbit’s sovereign clients to finance their military expenditure are likely to blame,” added Meitav brokerage analyst Gilad Alper.

ORDER BACKLOG UP

JERUSALEM, Aug 12 (Reuters) – Credit Suisse (CSGN.VX: Quote, Profile, Research, Stock Buzz) said on Thursday it planned to launch a debt fund in excess of $1 billion with its largest key shareholders to invest in emerging markets debt.

The Swiss banking giant did not name its shareholders but its largest stakeholders are the Qatar Investment Authority with 8.9 percent, Saudi conglomerate Olayan with 6.6 percent and Israeli holding company Koor Industries (KOR.TA: Quote, Profile, Research, Stock Buzz) at 3.24 percent.

Credit Suisse said the fund would operate through its Asset Management business and would “pursue credit investments in global emerging markets”.

“Our shareholders commitment to the fund is a testament to the strength of Credit Suisse’s Emerging Markets franchise and the value that can be created for investors in these important markets,” Rob Shafir, chief executive for the bank’s asset management division, said in a statement.

Koor’s parent, Israel’s IDB Group (IDB) (IDBH.TA: Quote, Profile, Research, Stock Buzz), separately said it would invest $250 million in the fund, with identical investments from Credit Suisse and two of the bank’s other largest shareholders.

IDB said the Emerging Markets Credit Opportunity fund (EMCO) would be managed by Credit Suisse and focus on investment opportunities in emerging markets in Latin America, Asia, Europe, the Middle East and Africa.

IDB’s investment will be made via two of its subsidiaries, Koor Industries (KOR.TA: Quote, Profile, Research, Stock Buzz) and Clal Insurance (CLIS.TA: Quote, Profile, Research, Stock Buzz), who will inject $125 million each.

JERUSALEM, Aug 11 (Reuters) – MA Industries (MAIN.TA: Quote, Profile, Research, Stock Buzz), one of the world’s largest generic agrochemicals makers, missed estimates due to higher financing costs and disappointed investors with a lack of detail on its Albaugh Inc takeover.

The maker of crop protection products, known as Maktheshim Agan Industries, said it had not completed due diligence on its planned takeover of the U.S. herbicide maker.

Analysts had hoped that Israel-based MA would provide details of its $1 billion takeover of Albaugh, which it announced in late June. [ID:nLDE65Q0E7] “We will be able to spell out more information in September,” Erez Vigodman, MA’s president and chief executive, told Reuters.

MA’s shares fell 1.4 percent at 13.91 shekels in afternoon trading, underperforming the broader Tel Aviv bourse, which was off 0.9 percent at 1105 GMT.

“The company is now in limbo until we know what is happening with Albaugh,” said Gilad Alper, an analyst at the Meitav brokerage, who rates MA “market perform” with a 14 shekel target. “It is hard to put a price on a company when a significant part of its valuation is a complete mystery.”

He said the market was also looking for more clarity on whether Albaugh could deliver an EBITDA margin of 15 percent this year as the company had expected.

“It’s fine they are doing such a thorough due diligence on such a large acquisition, but it is still somewhat disappointing,” Alper said.

JERUSALEM, Aug 10 (Reuters) – Israeli chipmaker TowerJazz (TSEM.TA: Quote, Profile, Research, Stock Buzz) posted higher quarterly adjusted profit, after revenues more than doubled on big gains in medical applications and power management chips, and predicted further sales gains into 2011.

In posting a more than doubling of quarterly revenue to $126 million, the company said on Tuesday it remained on track to record 2010 revenue of at least $500 million.

“Visibility is pretty good and the fourth quarter looks to be better than the third quarter,” chief executive Russell Ellwanger told Reuters. “Customer demand looks to be pretty strong.”

The company’s shares were up 2.2 percent at 5.87 shekels at midday in Tel Aviv, compared with a fall of 0.5 percent on the broader bourse.

TowerJazz (TSEM.O: Quote, Profile, Research, Stock Buzz), a small player in a $20-billion-a-year chip industry, has carved out a niche as a specialty maker of image sensors used in medical and dental x-rays, mobile phone cameras and digital cameras as well as radio-frequency chips and embedded memory chips.

Boosted by chips for X-ray cameras and consumer electronics and industrial power management, its revenue has grown sharply since the acquisition of U.S. chipmaker Jazz in 2008, although Ellwanger said most of its revenue growth is organic.

TowerJazz, which competes with smaller specialty foundries as well as Taiwan Semiconductor Manufacturing Co (TSMC) (2330.TW: Quote, Profile, Research, Stock Buzz), supplies to companies which supply to Samsung Electronics (005930.KS: Quote, Profile, Research, Stock Buzz) and LG Electronics Inc (066570.KS: Quote, Profile, Research, Stock Buzz).

TEL AVIV (Reuters) – Global growth of exchange traded funds (ETFs) is expected to jump in the coming years, particularly in Europe and Asia, as investors look for more “basic” financial products, a managing director at money manager BlackRock(BLK.N: Quote, Profile, Research) said on Thursday.

Deborah Fuhr, global head of ETF trading at BlackRock, said 30 percent of money invested in the United States and the UK is in passive funds such as ETFs, compared with five to 10 percent in continental Europe and Asia.

“We have seen a back-to-basic environment,” Fuhr said in an interview with Reuters during a visit to Israel. “People want products that are simple and do what they say they will do.”

Fees are also a big factor. The average annual cost for ETFs is 33 basis points, well below 93 basis points for index funds and 146 basis points for active funds such as traditional mutual funds, Fuhr said.

The higher cost for active funds includes paying for distribution fees to financial advisors.

Market regulators in some countries are seeking to discontinue that practice which is encouraging growth in fee-based advisory and helping growth in ETFs since they don’t pay distribution fees, Fuhr said.

At the end of June, there were 2,252 ETFs globally with assets of some $1 trillion — a 50 percent compounded annual growth rate over the past decade.