Shareholder Demands Documents in Failed Cal Purchase Deal

A shareholder has initiated legal action against Discount Bank, seeking disclosure of documents related to the failed sale of Cal, a credit card company. The shareholder, Gad Liebman, alleges that incorrect data was submitted to the Competition Authority, leading to a premature positive indication for the sale's approval. The Competition Authority subsequently imposed an "impossible condition" on one of the potential buyers, Union Harel, requiring the sale of its Super-Pharm holdings as a prerequisite for approving the Cal acquisition.

Liebman, represented by attorney Lior Lahav, claims that both Discount Bank and Cal suffered damages ranging from tens to hundreds of millions of shekels due to the failed transaction. He questions whether the bank adequately priced the competitive risks involved, especially considering the potential penalties buyers might face for a failed deal. The shareholder also argues that submitting false representations to the Competition Authority exposed the bank and Cal to enforcement actions under the Economic Competition Law.

Furthermore, Liebman contends that the misrepresentations damaged the bank's credibility with the Competition Authority and the Supervisor of Banks, particularly at a critical juncture when the bank requires their approval for alternative solutions, such as finding another buyer or seeking regulatory relief. This damage, he asserts, is significant even if difficult to quantify. Liebman is requesting access to communications with the Competition Authority, minutes from internal meetings concerning the sale, and documents detailing the decision-making process for selecting the buyer.