Air Transport World

Arkia CEO big buyer of El Al shares. (News Briefs).(Knafaim-Arkia Holdings CEO Israel Borovich)(Brief Article)

El Al's historic initial public offering on June 10 ignited a verbal dogfight over future control of the airline after it emerged that Knafaim-Arkia Holdings, a family-controlled enterprise headed by Israel Borovich, who also is CEO of the company's core Arkia Israeli Airlines unit, was the single largest investor in the stock sale.

Knafaim-Arkia bought 5% of El Al for $5 million and its package includes options likely to increase its holding to 20%, according to Israeli media reports. Long at odds with El Al over the Israeli market, Borovich in the past has expressed interest in acquiring the carrier together with privately owned airline Israir. That goal is opposed by Israel Antitrust Authority DG Dror Strum, who told local media, "I don't want Arkia to gain managing control of El Al. …

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