Eli Rozenberg, the new owner of El Al, responded to the airline’s demand that the government thwart his takeover of El Al because he is a “straw man for his father, NY-based businessman Kenny Rozenberg,” Globes reported. In a letter sent by his lawyers, Rozenberg accused the El Al board of acting against the best interest of the airline and queried why the board is still supporting the Borovitz Group although it failed to invest even one penny in the airline’s recent public offering. Rozenberg acquired 42.89% of El Al with a $150 million offering at the company’s public offering before Rosh Hashanah. Despite that fact, El Al’s board of directors is attempting to prevent the airline’s transfer of control to Rozenberg by influencing government ministers to nix his acquisition. Three government ministers must approve the acquisition and transfer it to Israel’s Government Companies Authority before Rozenberg officially gains control of the company. “It seems that the Borovitz Group is making illegal use of El Al’s name for its own ends which are not consistent with El Al’s goals,” the letter sent by Rozenberg’s lawyers stated “The letter sent by El Al’s board is full of lies and has the transparent and sole intention of obliterating, disrupting, and delaying the transfer of control of El Al to Kanfei Nesharim Aviation…The letter is intended to apply illegal pressure – against legal directives – and maintain the control of Knafaim Holdings [the Borovitz family’s company].” “Knafaim and its controlling owners abstained from investing even a single penny in El Al in the public offering and you – the board of directors – continue to support the control of Knafaim and its controlling shareholders for the ‘benefit of El Al.’” “The control permit granted to the Borovitz Group expired [as of September 16] and since that day El Al has been managed without an owner according to the legal permit.” “Every further delay in transferring control of El Al to Kanfei Nesharim Aviation will unequivocally harm El Al, its shareholders, creditors, employees, and its customers, and may jeopardize the stability of the company and even bring about its collapse,” the letter stated. “As long as the control of El Al is not transferred to Kanfei Nesharim, which invested more than NIS 360 million in the company, it will not be able to finalize the government’s plan, including the loan backed by the State.” The letter claims that some members of El Al’s board are using their official authority for cynical purposes – acting out of a clear conflict of interest – and are using the money invested by Rozenberg, the State, and the public to maintain control of the airline by the Borovitz Group. According to the Globes report, the letter included veiled threats of personal lawsuits against the El Al directors for failing to faithfully perform their roles to act in the best interests of the airline. (YWN Israel Desk – Jerusalem)

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