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Two Israel Oil Companies to Merge; Shareholders to Receive New Shares

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The immediate merger of Lapidot Israel Petroleum Company, Ltd., and Israel Oil Prospectors Corporation Ltd., has been announced by Pinhas Lavon, secretary-general of the Histadrut, who was the arbiter in the dispute over the future of the two companies. He notified the executives of Solel Boneh, the Histadrut’s contracting concern, and Mekorot, the Histadrut’s Water Development Company, of his decision. Solel Boneh is a substantial shareholder in the Israel Oil Prospectors, Ltd., while Mekorot is involved in the Lapidot Company.

All concessions and equipment possessed by the two companies will be passed on to the new company, according to Mr. Lavon’s decision. Shareholders of both firms will receive the new company’s shares, the value of which will be determined by mutual agreement. In the event of a dispute, Mr. Lavon will again serve as arbiter.

A Miami group of investors, also shareholders in the Israel Oil Prospectors, Ltd., notified Mr. Lavon of its willingness to participate in the new oil company. Legal experts here consider that the winding up procedure and the founding of the new company can be effected in four to six months.

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