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Prime Minister Benjamin Netanyahu reacted with a plan to break up the conglomerates that controlled vast swathes of the economy, opened up markets to competition and forced service providers to cut consumer fees.
The new regulations have brought consumers some relief - lower cell-phone bills and banking fees - but many investors and businesses say it is at a cost of dwindling profits and depressed share prices.
What upset Waldman most were amendments to the Securities Law that he could not have foreseen when he listed his company on TASE in 2007, several months after its offering on Nasdaq.
He was troubled by the empowerment of minority institutional investors, who previously had little influence at the companies in which they invested. New rules require majority approval by minority shareholders for issues such as executive salaries.
WILL OTHERS FOLLOW?
Officials at some of Israel’s biggest firms have said that, like Mellanox, they are nearing a tipping point.
Potash producer Israel Chemicals (ICL), the most traded company on TASE, is seeking to list overseas. Though it has no intention at present to delist from Tel Aviv, CEO Stefan Borgas said in a conference call: “ICL must act seriously and take into account a situation of an additional worsening in the business climate of the Tel Aviv bourse.”
The same goes for Nice Systems , whose products analyse video and big data.
“It makes much more sense for us to trade only on Nasdaq,” CEO Zeevi Bregman told the Globes financial newspaper, but made clear a delisting was not on the agenda at this time.
Such talk has scared off investors. Daily trading volume on TASE averages around 1 billion shekels, 47 percent of the level in 2010. Other markets have had more moderate drops; since 2010 trade in London has fallen to 80 percent, on Nasdaq to 77 percent and Tokyo to 79 percent.
Only three small IPOs have taken place in Tel Aviv since late 2011, while about 100 firms, roughly 15 percent, have delisted since the end of 2009.