A power struggle at the top shakes the legendary venture capital fund, and some are trying to profit from it
A control battle at Alron, the veteran venture capital fund, escalates: Lissia Bachar-Manuch was removed from her position as chairperson by her partners, following a dispute over a 90 million shekel debt. Eliyahu Kanfler submitted a tender offer for 15% of the company's shares.
A control struggle is shaking Alron, the veteran venture capital fund that was once a flagship of Israeli high-tech. The company, now traded at a market value of only 160 million shekels, was acquired about two and a half years ago by Arieli E.L. from Discount Investments (DSC) for 195 million shekels. The acquisition was financed through a loan of 90 million shekels from Phoenix Investment House, and now, due to a decline in Alron's stock, the controlling shareholders are struggling to meet the loan terms. A conflict erupted among the partners: Lissia Bachar-Manuch, who served as chairperson, was removed from her position by partners Oven Ranov and Eric Bentov, after she claimed threats and pressure from them. Bachar-Manuch even filed a police complaint. Meanwhile, businessman Eliyahu Kanfler submitted a tender offer for 15% of Alron's shares for 24 million shekels, at a price reflecting a 7% premium over the market price. The article presents the background to the deal, the disputes among the partners, and the uncertainty regarding the future control of the company.