A solution satisfactory to stockholders who want to keep possession of their stock in the Palestine Electric Corporation after the Israel Government buys into control of the utility has been worked out by a committee of Israeli Cabinet Ministers responsible for various areas of Israel’s economy, it was announced here today.
Those who do not sell their shares–the government has indicated it has no desire to buy out all stockholders–will be guaranteed a four percent tax-free dividend. They will also have the option of selling to the government within three years after the government formally buys up the controlling interest, on the same terms as those who sell now.
The purchase agreement for those who sell now provides that they shall receive four percent Israel government bonds valued at 29 and one-half shillings a share. If there is any difference in dividend payments between the government bonds and the PEC shares, the government will pay the difference to any shareholders who use the three-year option, thus guaranteeing them against any loss of income.
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