The economic recovery program undertaken by the financially troubled Koor Industries has thousands of employees worried.
The giant Histadrut-owned conglomerate is about to divest itself of the money-losing Tadiran electronics division.
With its future uncertain, Koor’s thousands of workers fear their pensions and fringe benefits are in jeopardy.
Tadiran manufactures batteries and electrical and communications equipment in dozens of factories all over the country, but mainly in the Tel Aviv area.
Koor’s board of directors decided Tuesday to authorize managing director Benny Gaon to dispose of Tadiran’s assets.
Tadiran has a book value of $200 million. Experts predict that its half-year losses, to be published shortly, will be “massive.”
The divestiture will cut the size of Koor in half, but is expected to improve its efficiency and better its chances for an economic turn-around.
The sale of Tadiran is being managed by two New York investment banking firms, Drexel Burnham and Leumi Partners.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.