Altshuler Shaham Deal Faces Legal Threat From Shareholder

A major deal to acquire Altshuler Shaham Financial Services is facing a legal challenge from a shareholder of Ayalon Insurance, Gad Lieberman. Lieberman, through his legal representative, sent a warning letter to the chairman of Ayalon Insurance, alleging that the acquisition by WiShore GlobalTech, Ayalon's controlling shareholder, was made without necessary approvals and could severely harm the company and its investors. The dispute centers on claims that the deal creates a significant structural conflict of interest, according to a report by "TheMarker".

Lieberman argues that WiShore, as the controlling shareholder, will now own a large financial entity that directly competes with Ayalon's own expanding pension and provident fund business, "Ayalon Pension." This situation, he contends, could negatively impact the allocation of business opportunities, distribution, and collaborations within the group of companies. The shareholder's anger was reportedly sparked after Ayalon announced it had waived its opportunity to participate in the acquisition due to "regulatory limitations."

Lieberman is demanding that Ayalon immediately disclose the specific regulatory limitations that prevented its participation, what alternatives the board considered, and who approved the waiver, especially given Ayalon Pension's rapid and substantial fundraising. The letter also calls for a thorough review of future arrangements for delineating activities between the companies, including a clause allowing WiShore to assign up to 10% of Altshuler Shaham Financial Services' capital to Ayalon. The shareholder asserts that transferring the full potential for value appreciation to the controlling shareholder could substantially diminish Ayalon Insurance's worth.

Ayalon Insurance responded by stating, "Ayalon continues to advance and expand its pension activity in accordance with the established business plan and is showing performance exceeding expectations. To date, approximately NIS 2 billion has been raised within it. Ayalon's board of directors acts and will continue to act in accordance with the law and regulations."