Ayalon Insurance Shareholder Threatens Legal Action Over Altshuler Shaham Deal
Ayalon Insurance shareholder Gad Lieberman filed a pre-lawsuit warning over the controversial Altshuler Shaham acquisition by controlling shareholder Wissur GlobalTech, citing severe conflicts of interest.
The massive acquisition deal for Altshuler Shaham Finance continues to create significant waves in the capital market, and is now facing legal threats from within. Gad Lieberman, a shareholder in Ayalon Insurance, sent a pre-lawsuit warning letter to the company's chairman through his legal counsel. According to his claim, the acquisition of Altshuler Shaham by Ayalon's controlling shareholder, Wobi (Wissur GlobalTech), was carried out without the required approvals and could severely harm the company and its investors.
Conflict of Interest and Regulatory Concerns
According to a report by TheMarker, at the center of the dispute is the claim that the transaction creates a severe structural conflict of interest. Under the warning letter, the controlling shareholder will now hold a large financial entity that directly competes in a field where Ayalon itself is currently investing substantial resources and building a new activity through its subsidiary Ayalon Provident Funds. Lieberman argues that this situation could adversely affect the allocation of business opportunities, distribution, and cooperation within the corporate group.
Shareholder outrage was sparked after Ayalon reported that it waived the business opportunity to participate in the acquisition due to "regulatory constraints." Lieberman demands that the company immediately disclose which specific constraints prevented the transaction, what alternatives were examined by the board of directors, and who approved the waiver, especially given that Ayalon's provident fund activity has already managed to raise massive amounts in a short period.
Demands for Transparency and Valuation Protection
Furthermore, the letter demands an in-depth examination of future arrangements to delineate activities between the companies, including a clause allowing Wobi to assign up to 10% of Altshuler Shaham Finance's capital to Ayalon. According to the shareholder, transferring the full appreciation potential directly to the controlling shareholder is a step that could substantially diminish the value of the insurance company.
Ayalon responded to the claims by stating: "Ayalon continues to promote and expand its provident fund activity in accordance with the established business plan, demonstrating performance that exceeds expectations. To date, approximately 2 billion shekels have been raised. Ayalon's board of directors acts and will continue to act in accordance with the provisions of law and regulation."
