Lipman Electronic Engineering Ltd (LPMA) (LPMA)

[midastouch017]

Merrill Lynch to start selling $60 million worth of Lipman stock tonight
10.5.2005 / 14:45
Nitzan Cohen

Two weeks after Lipman Electronic Engineering (Nasdaq, TASE: LPMA ) announced that its controlling shareholders were registering to sell some stock, it's happening. Tonight, after the bell on Wall Street, Merrill Lynch will begin selling $61 million worth of Lipman shares.

Last night Merrill Lynch people held a road show among U.S. institutional investors. The roaring response they received spurred the investment bank to begin the sale tonight.

Insofar as could be ascertained, U.S. institutional investors have pledged to buy enough stock, to preclude any selling to Israel's institutionals who might want to increase their exposure to Lipman.

The prospectus the company published shows that Isaac Angel, its president and chief executive, wants to sell up to 219,000 shares created by stock option conversion. Chairman Jacob Perry is putting 50,000 shares on the block.

Mivtach Shamir Holdings (TASE: MISH ) is selling a million shares and First Israel Mezzanine Investors wants to sell 639,000.

After the sale, Mivtach Shamir will be reduced from 17.9% to 13.8%. FIMI's shareholding will drop from 8% to 5.5%.

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Midas