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The First International Bank of Israel, one of Israel's five largest banks, posted a warning this week before announcing a loss in the first quarter of 2002- a highly unusual phenomenon in Israeli banking. This was the first loss in First International's history, resulting from from an increase in provisions for doubtful debts, were attributable to several borrowers in the telecoms market, and primarily Tevel cable television company, which is carrying heavy debts. Two days after posting the warning, the bank announced a loss of NIS 70 million in the first quarter of 2002 - compared with a profit of NIS 64 million in the first quarter of last year. Tevel owes First International NIS 445 million (out of a total debt to the banking system of NIS 2.3 million), and the UPC company, which has a controlling interest in Tevel, owes the bank approximately $50 million. Hitachi, the gigantic Japanese corporation, has decided to expand its investments in Isrel. Contacts have already been initiated with a number of start-up companies including iCognito Technologies Ltd., an Israeli security company, and a company that develops products for personal computers. Hitachi is particularly interested in Israeli start up companies that develop storage technologies - an area in which some 25 Israeli companies are already operating. The Israeli communications company Tadiran Kesher is increasing its exports to Asia. The company received two orders for modern tactile communications equipment from two countries - one for $80 million and othe other for $435 million. Tadiran's high frequency equipment will be installed in armored vehicles and other vehicles, as an alternative to satellite contact, for ranges of hundreds and thousands of kilometers. The company anticipates that sales in the US will grow to $50 million this year, as a result of the sale of personal computers and palm pilots to the US army. Israeli companies are acquiring Israeli companies and entering foreign markets at a growing pace. The Teva Pharmaceutical Industries Ltd. (NASDAQ:TEVA) has reached an agreement to acquire Honeywell Pharmaceutical Fine Chemicals for $90 million. The Italian company produces raw materials for pharmaceuticals; this acquisition gives Teva its fourth plant for the production of raw materials for pharmaceuticals in Italy. Teva is the leading generic company in the world, and one of the largest companies in the production of raw materials for pharmaceuticals. The international Delek company (controlled by Yitzchak Teshuva), and the Tom Maintenance company (controlled by Zvi Biran) have together acquired 60% of the British company that owns office projects for rent in the City of London in an area of close to 20,000 square meters. The entire project is rented to the American company Merrill Lynch until September 2015. A similar acquisition in Great Britain. The real estate company headed by Moshe and Yigal Gindi acquired an office project in the center of London near Covenant Gardens for $30 million. This is the largest foreign ever deal made by this company, which decided to convert half of the space into residential property, and to build dozens of prestigious apartments for sale. The Israeli company Dor Chemicals has acquired Australia's largest company that manufactures polypropylene film, Shorko, for $25 million. The Israel real estate company Equity 1 this week acquired the Village at Blanco shopping center, covering 10,000 square meters, in San Antonio, Texas for $19 million. Equity 1 has 88 centers in Texas and Florida. Israeli shopping center entrepreneur Reuven Gross is expanding his activities to locations abroad. Gross has recently acquired shopping centers in Paris, France and in Liege, Belgium at an investment of NIS 92 million. Israel's second largest pharmaceuticals company, Agis, is conducting serious negotiations to acquire a German plant that manufactures raw materials for pharmaceuticals at a cost of some $15 million. The Eden natural mineral water company has acquired two companies, in France and in Finald, that sell mineral water in jugs. The Eden company acquired the French company at a cost of 1.8 million Euro.
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