Ayalon Insurance Shareholder Threatens Lawsuit Over Altshuler Shaham Deal

A shareholder in Ayalon Insurance has demanded the company revoke or freeze its decision to relinquish the option to acquire control of Altshuler Shaham Financial Services. If the demands are not met, the shareholder threatens legal action, including seeking an injunction and filing a derivative lawsuit against WiShore GlobalTech and the involved company officials. The demand stems from the ongoing transaction where WiShore GlobalTech, Ayalon's controlling shareholder, is in the process of acquiring control of Altshuler Shaham Financial Services.

The shareholder questions whether Ayalon forfeited a business opportunity that rightfully belonged to it and if this waiver occurred without adequate compensation. Ayalon has stated that Israel's Concentration Law prevents it from acquiring Altshuler Shaham Financial Services in its current structure, asserting that it could not have completed the purchase regardless and therefore did not miss a usable opportunity. However, the shareholder argues that even if Ayalon couldn't make the acquisition, it should have received compensation or protections for waiving its option.

The shareholder further contends that the acquisition by the controlling shareholder raises concerns about conflicts of interest and the necessary approvals preceding the decision. The shareholder's apprehension also extends to the future operations of both companies. Pension and provident fund activities are a significant part of Ayalon's business. Following the acquisition, WiShore will control a large entity operating in areas that overlap with Ayalon's activities. There is a concern that WiShore might prioritize the development of Altshuler Shaham Financial Services, potentially at Ayalon's expense.

The shareholder is seeking to determine if Ayalon should have received financial compensation, rights, or other protections before abandoning its acquisition option. Additionally, the shareholder questions whether the decision required approval from Ayalon's shareholders or other company bodies, given the interrelationship between Ayalon and WiShore.