El Al Controlling Shareholder Rejects Acquisition Offers After $1 Billion Paper Profit
Translated & summarized from TheMarker by baba
Kenny Rosenberg, controlling shareholder of El Al, has rejected offers to buy into the airline, which has seen its stock rise 1,000% in five years. His initial $230 million investment has yielded a paper profit of about 4 billion shekels. Despite a terror incident and analysis suggesting the stock is undervalued, some believe the market share peak has passed. Rosenberg acquired control of the struggling airline in September 2020.
The story in 5 lines · by baba
- Kenny Rosenberg rejected offers to buy into El Al, which he controls.
- El Al's stock has surged 1,000% in five years, with a paper profit of 4 billion shekels.
- Rosenberg acquired control of the airline in September 2020 during the COVID-19 pandemic.
- The airline was in a poor financial and operational state when Rosenberg took over.
- Some analysts believe El Al's stock is significantly undervalued, while others disagree.
Kenny Rosenberg, the controlling shareholder of El Al, has reportedly rejected offers to purchase a stake in the airline, despite an initial investment of $230 million turning into a paper profit of approximately 4 billion shekels ($1 billion). The airline's stock has surged by 1,000% over the past five years. Amidst the backdrop of a terror incident in Dubai and a report from Mor Investment House suggesting the stock is significantly undervalued, one senior investment manager commented that the market share peak has already passed.
Rosenberg, an American Jew, acquired control of El Al in September 2020, during the COVID-19 pandemic, through his son Eli. At the time of the acquisition, the airline was in a poor financial and operational state. This move by Rosenberg follows a trend of significant real investments in Israel by Jewish businessmen, including former Israelis, over the last 15 years, such as Len Blavatnik in Clal Industries, Eduardo Elstein in IDB, Nati Saidof in Shikun & Binui, and Haim Saban in Partner.
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